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"SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. The

"SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash." https://www.sipc.org/for-investors/what-sipc-protects https://www.sipc.org/for-investors/what-sipc-protects

dehrmann 4y ago
> $500,000 That's way too low. The other thing this exposed is that FDIC protection for businesses is also too low.
- hotpotamus 4y ago
  If you want the government to backstop every single risk for businesses and investors, then prepare to pay a lot more in taxes.
  - dehrmann 4y ago
    Making the leap from ensuring money saved in safe, heavily regulated entities to "backstopping every single risk" is disingenuous. There are risks businesses should have to think about. Safety of money in their bank isn't one of them.
    - hotpotamus 4y ago
      Why shouldn't they have to worry? FDIC insurance limits are hardly uncommon knowledge. I have more than $250K dollars and I certainly worry about how best to manage it.
- sneak 4y ago
  It probably hasn't been recently (or ever) inflation-adjusted since it was set. There are a lot of limits and thresholds like this that could use regular (or even extant) reindexing. EDIT: it was increased to 250k in 2008 or 2010. As you note this is too low. It seems like it has been rather low its whole history. Given that our inflation rates are basically halving the currency every decade or so, it should be reindexed much more frequently (and also raised in any terms).
- Salgat 4y ago
  Businesses are able to buy insurance on top of what FDIC provides. It's only too low if you're foolish enough not to buy additional insurance if needed.
- piyh 4y ago
  It's a per bank amount. If you're floating 300k in cash as an average person, split it between institutions.

dehrmann 4y ago

> $500,000 That's way too low. The other thing this exposed is that FDIC protection for businesses is also too low.

hotpotamus 4y ago
If you want the government to backstop every single risk for businesses and investors, then prepare to pay a lot more in taxes.
- dehrmann 4y ago
  Making the leap from ensuring money saved in safe, heavily regulated entities to "backstopping every single risk" is disingenuous. There are risks businesses should have to think about. Safety of money in their bank isn't one of them.
  - hotpotamus 4y ago
    Why shouldn't they have to worry? FDIC insurance limits are hardly uncommon knowledge. I have more than $250K dollars and I certainly worry about how best to manage it.
sneak 4y ago
It probably hasn't been recently (or ever) inflation-adjusted since it was set. There are a lot of limits and thresholds like this that could use regular (or even extant) reindexing. EDIT: it was increased to 250k in 2008 or 2010. As you note this is too low. It seems like it has been rather low its whole history. Given that our inflation rates are basically halving the currency every decade or so, it should be reindexed much more frequently (and also raised in any terms).
Salgat 4y ago
Businesses are able to buy insurance on top of what FDIC provides. It's only too low if you're foolish enough not to buy additional insurance if needed.
piyh 4y ago
It's a per bank amount. If you're floating 300k in cash as an average person, split it between institutions.