I'd favor a middle road. Banks may apply for an exemption to Glass-Steagall, but in doing so, they also need to set up their own alternative to FDIC and forfeit claims to bail-out money in the event of failure.
Outfits like J.P. Morgan and Goldman Sachs are big enough to set up self insurance funds. They may partner with Swiss and other international banks to do so if they wish.
maybe. not sure.
if you can set it up so that the fdic/govenment/taxpayers ARE DEFINITELY protected from getting dragged into any bank failures
maybe
maybe
but those insurance dineros have to be REAL and on deposit where we can SEE them at ALL times
not just some re-insurance contract from a foreign bank or other piece of paper printed up with photoshop in some banker’s cubicle