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No. - The FDIC's risk is distributed across many bank balance sheets - The FDIC is collecting insurance premium on these deposits Structures like this have e
by chernevik 4y ago
No.
- The FDIC's risk is distributed across many bank balance sheets
- The FDIC is collecting insurance premium on these deposits
Structures like this have existed for decades.
[ETA: I've just seen a good bit in the WSJ that such structures do abuse deposit insurance, since they allow large depositors to avoid inspection of bank liquidity. So maybe I'm wrong.]