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FDICs remit is maximal recovery for depositors and stability for the system, not just 250k and a pat on the back. 250k is the absolute least a large depositor
by kristjansson 4y ago
FDICs remit is maximal recovery for depositors and stability for the system, not just 250k and a pat on the back.
250k is the absolute least a large depositor can recover in the event of a failure. Holding more than that is not some moral failure we should be crucifying businesses.
- breck 4y agoRight. And it would have been awesome if they were able to recover 100% for depositors (even over 250K)—the honest way. Instead we had whiners and panic peddlers get their 100% the dishonest way. I would much rather have everyone take a couple % haircut than reward that kind of behavior.