The FDIC is funded by banks. The FDIC did not have to use taxpayer dollars during the financial crisis. In practice, the FDIC has not been involved in these socialized risks you speak of, though if it ran out of money, the government would back it up.
The FDIC also provides public benefits, like avoiding economy-crippling bank runs.
The FDIC is bailed out by the taxpayer, so does the private banks. It's a nothing but socializing the risks, while privatizing the profits. It's immoral.
China does things right here, when it fails due to your corruption, you get executed, instead of bailed out.
The FDIC has never been bailed out, and as I pointed out, there are plenty of public benefits to that government guarantee. We would be less wealthy as a society without it.
The FDIC also provides public benefits, like avoiding economy-crippling bank runs.
It's a good thing.