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It is about legality, not morality. Rescuing depositors by ignoring FDIC limits is violating the law. From the FDIC page: "Depositors should note that federal
by whydoyoucare 4y ago
It is about legality, not morality.
Rescuing depositors by ignoring FDIC limits is violating the law. From the FDIC page: "Depositors should note that federal law expressly limits the amount of insurance the FDIC can pay to depositors when an insured bank fails, and no representation made by any person or organization can either increase or modify that amount." [1]
[1] https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/ https://www.fdic.gov/resources/deposit-insurance/brochures/i...
- dragonwriter 4y ago> Rescuing depositors by ignoring FDIC limits is violating the law. No, invoking the systemic risk exception in the law is not violating the law. Because the exception is part of the law.
- whydoyoucare 4y agoThanks for the pointer, and I confess I overlooked that part. That said, I hope my faith in the people making this call is not misplaced, though at some level I feel tormented because this does not seem fair. Only time will tell.