Adding on to this as explanation for GP: Funds over the FDIC limit aren’t just surrendered; instead, you become a creditor to the failed institution. The FDIC

Adding on to this as explanation for GP: Funds over the FDIC limit aren’t just surrendered; instead, you become a creditor to the failed institution. The FDIC works to recover those funds - good loans are sold to other institutions, payments due are collected, furniture and real estate is sold, the usual. So a percentage of your money may be paid to you over several years time. Good luck managing free cash flow in the meantime.