Bank Regulation - safe and risky

I think there should be a range of regulation levels.

1. More regulation, less risk allowed, more depositor security. Dull but worthy. If the bank folds the low risk assets can be used to secure the deposits. The state owns the bank with little risk.
2. Less regulation, more risk allowed, less depositor security. Fun. If the bank folds the depositors get back what can be got bank. The depositors get some money back and the state owns the rest with little risk.
3. Little regulation, lots of risk, no depositor security. Exciting for some. The state owns the bank.

Simplistic? Sure, but I think its a good starting point...