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In the US, banks are not their own banks - if they screw up big time they rely on the US government to insure/print dollars to make up for their mistakes.
by someguydave 8y ago
In the US, banks are not their own banks - if they screw up big time they rely on the US government to insure/print dollars to make up for their mistakes.
- Nursie 8y agoSo... sounds like a really solid thing, backed up by government. Good place to put money.
- roywiggins 8y agoFDIC insurance is paid out of premiums paid by individual banks and kicks in if a bank actually goes under. That said, if the FDIC insurance fund starts to go dry, there are various mechanisms to inject more money into it.
- bduerst 8y agoHow is that a problem? The great recession bailouts were paid back with interest, and FDIC insurance is a feature not a bug.