As I see it, one of the major issues with banks recently is that they've all conglomerated into a few large ones, so there isn't much choice or competition anym

As I see it, one of the major issues with banks recently is that they've all conglomerated into a few large ones, so there isn't much choice or competition anymore. (Chart: https://upload.wikimedia.org/wikipedia/commons/b/be/Graph_of_Bank_Mergers_in_USA.svg https://upload.wikimedia.org/wikipedia/commons/b/be/Graph_of...) Backing those industries with public funds has already led to them making riskier investments, as they know the public will cover their losses. A public (i.e. subsidized) bank has no incentive or need to compete or appease its customers, so I fail to see how this would make things better and not worse.