They could require banks to have a very high (perhaps 50%) reserve requirement on uninsured deposits, and perhaps restrict banks having interest-paying uninsured demand (not a CD, “checking” accounts) deposits. This “crisis” resulted from rising interest rates (due to the growing Federal deficit, due to Congress spending more money than it has, and borrowing the rest) causing banks to offer higher interest rates on saving accounts, but that caused banks to start losing money since they generally have short term deposits and long term loans whose interest doesn’t go up fast enough to cover the raising rates on savings accounts. The people (usually corporations) saw the bank become unprofitable, and justifiably “freaked out”.
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