> Nobody lost money in an FDIC insured account. This is true for you & I. But the wealthy aren't concerned about the FDIC insurance as their balances are far

> Nobody lost money in an FDIC insured account. This is true for you & I. But the wealthy aren't concerned about the FDIC insurance as their balances are far in excess of what would be covered by it. They follow the health of a bank very closely as they stand to lose a great deal of money if it becomes insolvent. Many people think what prompted the sale of Wachovia to first Citibank (briefly .. sort of) then Wells Fargo for $15.1 billion [0] in October of 2008 was the implosion of their MBS holdings in their Golden West Financial acquisition. If you recall, Golden West had the "Pick a Pay" program, where borrowers could decide how much their mortgage payment would be (potentially even less than the interest portion, where the remaining amount was lumped back in to the balance) What really happened was the wealthy depositors in Wachovia got wind that the bank was in trouble and initiated massive withdrawals, causing a run on the bank. If the sale to WF hadn't happened that weekend and restored confidence in the bank, Wachovia would likely have not opened their doors on the following Tuesday. Source: coworkers who were there at the time. [0] https://dealbook.nytimes.com/2008/10/03/wells-fargo-to-merge-with-wachovia/ https://dealbook.nytimes.com/2008/10/03/wells-fargo-to-merge...