4 ms·
No, the bank could be allowed to collapse or the Fed could arrange a meeting (LTCM style) and basically force a buyout. Nothing is assumed.
by mynameishere 4y ago
No, the bank could be allowed to collapse or the Fed could arrange a meeting (LTCM style) and basically force a buyout. Nothing is assumed.
- kasey_junk 4y agoThe FDIC is explicitly backed by the full faith and credit of the US government (and thus taxpayers). In the extremely unlikely case that the fdic insurance fund couldn’t make insured deposits while the tax payer is on the hook.
- ceejayoz 4y agoThat's unrelated. The FDIC isn't gonna renege on the $250k protection, even if they run out of money. The US government will step in. The bank's continued existence isn't the FDIC's concern. Making the depositors whole is.