STORY: After a dramatic weekend, regulators said the failed banks' customers will have access to all their deposits starting Monday and set up a new facility to give banks access to emergency funds. The Federal Reserve also made it easier for banks to borrow from it in emergencies.

"I think the step today was a good step to protect depositors," O'Hara continued. "I think the moral hazard there is, why do we have an FDIC then? Why don't we just have the federal government back all bank deposits, not just those up to $250,000?"