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You are right. There is no legal contract, it's an insurance policy. In practice this is as good as having a legal contract is what I meant.
by deepGem 4y ago
You are right. There is no legal contract, it's an insurance policy. In practice this is as good as having a legal contract is what I meant.
- eru 4y agoIn practice it's probably better than a legal contract for a small time depositor in some ways, because there's lots of political pressure on FDIC to make good on that. If it was just a legal contract, in the worst case you'd have to sue to hold them to account. (On the other hand, politics can change from one day to the next; but contracts are harder to unilaterally change.)