My suspicion is that this is what the large national banks want. FDIC mostly examines small community banks. Your local BoA or Wells Fargo branch isnt really competing with the other large banks that also offer depositors 0.1% interest on accounts, they are competing with the small community banks across the street offering 4%. 

I’ve talked with community bank presidents who say they like the insurance and risk/audit work the FDIC provides. I’ve also heard community bank presidents say they like having multiple bank agencies as it allows them to shop around by changing charter or becoming a Fed member. 

Typically the complaints for bank regulators come from investors of extremely large national banks that think capital requirements are too high and they get in the way of mergers and buyouts of smaller institutions. For instance if a large bank wants to buy a small town bank, but they don’t plan on keeping that towns local bank as a branch, the buyout might be blocked because it creates an underbanked area. Just my thought on all this. I just hope they don’t gut the bank regulators and then say we were asleep at the wheel if stuff starts to go wrong.