Translation: "We need more ways to prevent people from getting back their own money when we screw up with it.""Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday. "
As far back as the early-mid 1800's in this country, the judicial branch ruled that deposits are not owned by the depositor.
And, banks are allowed to have a "bank holiday" (temporary closure) when too many depositors demand their money back. Meaning, instead of the bank going out of business like any other business, they are protected by government. And, the principal owners of the bank are not personally liable to cover the depositors.
See the Minority Report of the Reagan Gold Commission for the history mentioned above.
You can bet that if a bank was at risk of folding up without government protection, and its principals were personally liable to cover depositors, suddenly every bank in the country would become very reliable and very stable.