Without the FDIC, we’d be in a world of hurt far worse than the one we’re in now. Without the federal deposit guarantee that the FDIC provides, people would take their money out of banks and hoard it in real cash. Such hoarding would severely contract the money supply (because each dollar in the bank creates multiple dollars in deposits).
Some regulations are bad; good regulations are necessary; and the best of them have held up remarkably during this severe test, arguably the greatest test since their creation, since the FDIC became permanent law after the worst failures of the Great Depression.