No-one is saying this. Ackman isn't saying this. He says explicitly that depositors outside of FDIC will need to be paid through the sale of assets. What he is

No-one is saying this. Ackman isn't saying this. He says explicitly that depositors outside of FDIC will need to be paid through the sale of assets. What he is saying is that the bank should be recapped (with existing equity essentially wiped out), the govt should put in place a support package to help with the sale of assets (that would likely be profitable for the taxpayer, as in 2008), and the franchise value (which is undoubtedly positive) should be preserved. I do not agree with elements of this but the FDIC system isn't supposed to work proactively. The insurance element of the system is working, they have stopped depositors doing things that will harm the value of the assets, it is working.