I recently removed my money from a consolidated, large regional bank to a local bank with a healthy balance sheet. It is healthy because they are in touch with the local community and understand the risk involved in loans based on that local market knowledge and direct contact with the person(s)or business receiving the loan.
A modest proposal: Instead of taking deposits of large failed banks and passing them to another large bank that is backstopped by the Treasury, why not distribute the deposit portfolio of a failed bank to various local banks based on the zip code of the depositor?
The money would be deployed in the form of loans much more rapidly and intelligently.