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if this is the way we're going to behave, then cap the maximum size of accounts at the FDIC coverage limit (implement account software in Rust, not C, no overru
by fsckboy 4y ago
if this is the way we're going to behave, then cap the maximum size of accounts at the FDIC coverage limit (implement account software in Rust, not C, no overruns :) If you go over this amount, the bank should automatically create a new account for you and put the excess in there. done, you're 100% insured, we don't have to do anything special to protect you.
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Probably that means (I don't know the regs) that the bank will have to hold more of your money as reserves in cash on their books and not put it at risk, possibly pay more in insurance premiums if that's how FDIC insurance works. Probably it would make things really inconvenient for Roku to keep $500million in their bank account. But at least we would then deal with it at the time it occurs, and not in an emergency.
- auntienomen 4y agoIt would have to be a new account at a different bank. FDIC coverage is per bank, per depositor, and per ownership category (e.g. single vs joint account).
- fsckboy 4y agoi'm pretty sure you're wrong about that, but not invested enough to check. but if you're right, it seems a little silly, why impose that "diversification" on bank customers? if 100 millionaires live in a city, why should they all have accounts at all the different banks, as if that's somehow safer for the FDIC than have the same funds spread around in the same quantities across the same banks, just under different names.