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FDIC limits end at 250,000. If your levered bank fails, that's all you get (maybe more if it's unwound and there are assets left ... but that can take a long t
by anonuser123456 7y ago
FDIC limits end at 250,000. If your levered bank fails, that's all you get (maybe more if it's unwound and there are assets left ... but that can take a long time).
With an MM fund you're holding treasuries as collateral, which the fed will buy immediately for cash.
- toomuchtodo 7y agoHow many non-institutional investors are keeping that much cash at a single institution? And if you're using a cash management account such that Fidelity has, their underlying banks are giving you $1.25M in FDIC coverage in aggregate. We're arguing different use cases.