Presumably, #2 is only possible with a government guarantee for depositors.

The FDIC's actions indicate that the insured deposit limit is really unlimited instead of the advertised $250,000.

This takes away a huge risk associated with recklessly handling depositors money because now the FDIC will swoop in and make ALL depositors whole.

Way fewer people hate you at the end, which is a meaningful disincentive otherwise.

A lot of people would lose money and the system would have to change.

Can't do 8 without those!