Banks might be protected under some federal legislation, but overall it doesn't really make much sense for any sizeable bank to insure themselves with some othe

Banks might be protected under some federal legislation, but overall it doesn't really make much sense for any sizeable bank to insure themselves with some other party. For any non-rare event it's much easier to just keep some emergency money at hand. The only thing it'd make sense to insure themselves against are large scale damages that exceed the amount they can reasonably write off, but if the damages exceed the amount of funds a bank has readily available then there's little chance anyone else can cough up that amount of money other than the government.