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If a bank has more assets than liabilities, your balance is 100% backed. All non-failed banks have more assets than liabilities, therefore…
by quickthrowman 4y ago
If a bank has more assets than liabilities, your balance is 100% backed. All non-failed banks have more assets than liabilities, therefore…
- bombcar 4y agoAnd the banks in the USA are backstopped by FDIC, which will step in up to $250k. Bank shenanigans have happened in the past, but at least the smaller accounts survived unscathed. https://en.wikipedia.org/wiki/Washington_Mutual https://en.wikipedia.org/wiki/Washington_Mutual https://en.wikipedia.org/wiki/HomeFed_Bank https://en.wikipedia.org/wiki/HomeFed_Bank (Somehow my family got caught in both of those, we weren't very good at picking banks heh)
- arcticbull 4y agoAnd the FDIC is backstopped by the Fed. They have a $100B line of credit there. In the WaMu case actually no money was lost by anyone - and they didn't even touch the Bank Insurance Fund. The Office of Thrift Supervision took control of WaMu and sold it JPMC.