The bad banks got to hide behind the good banks, the good banks can't possibly win under such a scenario, since they get lumped in as "the banks" by the masses

The bad banks got to hide behind the good banks, the good banks can't possibly win under such a scenario, since they get lumped in as "the banks" by the masses that don't care about specific behavior but craft their ideas based on "industry". Ford ticked up after not taking a handout, larger well governed banks had no such opportunity. Deposits up to $100K (or thereabouts) were insured by the FDIC, so even under a run, the savers in the bad banks were not going to be left high and dry; and perhaps wiser about where they put their money in the future. Perhaps the Federal Government didn't want to see the FDIC invoked. Instead, a precedent was set; bad behavior was not punished (by way of market action), and good behavior is tainted by association (via political demonizing).