Does this sound similar? Yes, it does. Banks that are protected by the the Federal Deposit of Insurance Corporation (FDIC), have no incentive to be conservative with their depositors money. Any money that is lost by the bank will be restored by the FDIC. What this means is bank can be as risky as they want. What this also means is that depositors have no responsibility to look into good and reliable banks, since up to $250,000 of their money will be restored if lost or stolen.
It's actually a bit ironic because many people understand the nature of the big banks taking risky bets and causing the economy to crash, however; when it comes to storing their money they go no where else but to the same very big banks who are placing risky bets on their lives. But like I said, I can't blame the banks or the very people who wish to do business with these banks. I can only blame those who imposed the flawed system. And the blame for that belongs to big brother himself, the US government.