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> Without the FDIC the first thing banks would have done in 2008 would have been to drop the savings accounts of a lot of regular people. Banks go out of busin
by skookumchuck 9y ago
> Without the FDIC the first thing banks would have done in 2008 would have been to drop the savings accounts of a lot of regular people.
Banks go out of business if they get a reputation for defaulting on depositors' accounts. After all, would you deposit money in such a bank? I wouldn't, either. Depositors would still have legal recourse against the bank, too.
- pjc50 9y agoOddly, the only banks this happened to were in Cyprus and are still in business.
- skookumchuck 9y agoAre you a current customer of those banks? I'm not, either.
- jazzyk 9y agoThey did not default - there was a 10% haircut on accounts > 100K. The haircut was possible only because most of the > 100K accounts were held by rich (mostly shady) Russians.