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They went beyond it for several banks: To my knowledge, nobody lost money in the dozens of banks that the FDIC closed in the 2008 meltdown, despite several depo
by jpmattia 4y ago
They went beyond it for several banks: To my knowledge, nobody lost money in the dozens of banks that the FDIC closed in the 2008 meltdown, despite several depositors being beyond the FDIC limits.
- pyrale 4y agoDid they even have that power in 2008? I remember they issued a statement about how they could have avoided losses for creditors, had they properly liquidated Lehman Brothers [1]. [1]: https://www.fdic.gov/regulations/reform/lehman.html https://www.fdic.gov/regulations/reform/lehman.html
- jpmattia 4y ago> Did they even have that power in 2008? I don't remember tbh, but IndyMac (in July 08) was before Lehman (in Sept) so I think the answer is yes.
- SkyPuncher 4y agoMy impression has always been the limit has been designed to accommodate a "worse case scenario" where many, many banks need to be saved. If it's only a handful, it's in the gov't interest to ensure that businesses and people don't loose their savings.
- TMWNN 4y agoNot true. IndyMac customers got 50 cents on the dollar, even with the retroactive raising of the FDIC insurance limit to $250K.