Industrial banks, good idea

Yet despite their good prudential record, industrial banks' prospects have become somewhat dimmer in the last two decades. A series of moratoria—first by the FDIC, then by the Dodd-Frank Act—kept a lid on new industrial bank charters until 2013. One event more than any other served to galvanize industrial bank opponents: Wal-Mart's July 2005 charter application. Nearly 14,000 mostly critical responses pushed the FDIC to enact its moratorium and gave Greenspan an opportunity to advocate pulling the plug on industrial banks altogether. Community bankers joinedthe fray, of course, arguing that a Wal-Mart bank would put them out of business, usher in monopoly, and increase risk in the system. In March 2007, the retail giant, exhausted from nearly two years of "manufactured controversy," withdrew its application. The Wal-Mart fiasco marked the start of a 15-year-long hiatus in industrial bank approvals, contributing to a dearth of new bank charters of all kinds since the 2008 financial crisis.

The main difference is that industrial help the middle class while regulated banks tax them. And that is the opposition from the left and right, both want automatic bailouts obtained by someone else's taxing authority.  In this case, the Fed can apply an unlegislated tax to be collected by traditional bankers. 

My suggestion is to default and send the regulators back into their Nixon Shock Syndrome.