Anyway, its hard to disentangle either the market side or the regulatory side from the end result, and blame one over the other.
I don't see why the government has to be involved in regulating any banks or lending companies. If the goverment offers deposit insurance it should do so after the bank first buys private insurance. I would not keep money in a bank that was not certified as sound by a reputable bank examiner. This business in the US of banks being too big to fail is nonsense. In a free market, if banks get too big and unstable, their stock price will suffer and their shareholders will move to break them up.