Why should it matter whether it's deposits or equity or bonds? The instrument is irrelevant to the logic - if I have to back it on the downside then I want a piece of the upside too.
Businesses aren't making upside by putting their working capital in a bank checking account. Mine was making like 0.1%, it's negligible. I would be happy to socialize that upside for higher limits on deposit protection.
Equity and bond holders are a totally different group of people, they are investors in that bank. They are explicitly taking risk on the bank as an investment, not as a basic piece of their financial plumbing.
Equity and bond holders are a totally different group of people, they are investors in that bank. They are explicitly taking risk on the bank as an investment, not as a basic piece of their financial plumbing.