[wideawake]

The solution is to put credit derivatives in a separate affiliate and, per your comment, not charge deposit insurance on those transactions.

here's the resulting conundrum: how do you manage risk for depositors, when you decide to single them out as the only stakeholders in the bank whom the bank does not protect?

[Praxeologue]

For a commercial hedge among sophisticated and (initially) well capitalized parties, no deposit insurance is necessary.