There needs to be a way to recapitalize (the insurance fund), but the FDIC proposal would end up hurting the low- and middle-income consumers. If the banks have to increase their expenses, they will pass the cost on to consumers in the form of higher service charges and fees. Middle-income individuals will find that their opportunities for mortgage loans and small business loans will be (hurt).
Low-income individuals will be affected. They only need a few services from a bank, like check cashing. The elderly poor are another key group that would be hurt. They should be able to put money into a bank without fear of fees that would erode their balance.
Banks got into trouble by involving themselves in bad deals perpetuated by and for the rich. As such, the rich should have the burden of recapitalizing the FDIC.