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Last I checked the FDIC had about $50B in assets to back $2T in bank deposits. In other words, they could hardly scratch the surface of a systematic problem.
by butlerm 5y ago
Last I checked the FDIC had about $50B in assets to back $2T in bank deposits. In other words, they could hardly scratch the surface of a systematic problem.
- lottin 5y agoIf all banks go bankrupt at once, sure, the insurance will also go bankrupt.
- butlerm 5y agoThe problem is that the banking system carries a large systematic risk of going bankrupt all at once, and deposit insurance is not adequate to deal with that. The real guarantor of your deposits is the Fed not the FDIC, and fortunately they did a bang up job of it last time around.