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In the USA, bank accounts are guaranteed by the government, up to $250K.
by kwertyoowiyop 4y ago
In the USA, bank accounts are guaranteed by the government, up to $250K.
- tootie 4y agoAnd the FDIC can afford to do that because there are laws dictating liquidity requirements to banks and disclosure requirements to inspect and enforce those rules.
- kwertyoowiyop 4y agoIt’s almost as if our existing financial system, built upon the lessons from hundreds of years, is worthwhile! :-)
- Veliladon 4y agoIt's been funny to watch crypto basically speedrun the entire monetary system from Rai stones all the way to calls for central banking.
- Animatronio 4y agoThat's what makes it so boring, whereas DeFi is so exciting it gives you a heart attack seemingly every other day.
- legutierr 4y agoWhat does DeFi have to do with any of what is happening with FTX?
- imtringued 4y agoThat doesn't stop people from thinking the Fed is the spawn of Satan.
- kwertyoowiyop 4y agoWhat was that recent quote about cats thinking they are independent, but in fact are completely dependent on a system that they don't understand at all?
- nostrebored 4y agoYou would’ve been correct two years ago. We’re doing zero fractional reserve banking now. Hearing this should convince people that they should get their money out now, but nobody seems to care.
- klodolph 4y agoI don’t know about others, but I suspect that if the FDIC ran out of money, congress would figure out a way to fund it even if it meant printing money. I am okay with this.
- nostrebored 4y agoBut liquidity is the issue here. In the event that this happens, how long would it be before you could have access to your funds?
- klodolph 4y agoWhy do you say liquidity is the issue? It sounds like you are imagining some specific scenario here.
- imtringued 4y agoHe means that the bureaucratic arm may take time to process your insurance claim, after all you aren't the only one waiting for your money.
- kwertyoowiyop 4y agoThe answer seems to be “a few business days, usually next next business day” but that likely won’t appease the tinfoil hat crowd. https://www.fdic.gov/consumers/consumer/news/cnfall14/misconceptions.html https://www.fdic.gov/consumers/consumer/news/cnfall14/miscon...
- kasey_junk 4y agoYou don’t need to guess. The FDIC is backstopped but the full faith & credit of the US government. There is a link prominently on the website: https://www.fdic.gov/consumers/assistance/protection/depaccounts/confidence/symbol.html https://www.fdic.gov/consumers/assistance/protection/depacco...
- eftychis 4y agoPer institution. And there is a lot of consolidation. So I would be careful. It is really easy to be placing money into different banks, but essentially the same one.
- achenatx 4y agothere are a variety of caveats, on your side it is per entity. If you are married it is 500K, if you have a trust it is like 1.25M. 250K for each beneficiary up to 5 (or something like that).
- bluetwo 4y agoActually this is not correct either. A married couple each have 250k coverage for their personal accounts, and each have 250k for shared account(s), so they could in theory have 1M coverage at a single institution. Other qualified relationships work similarly.