The FDIC doesn't cap all deposits at the limit when they take over a bank. That would be insanity. What they do is insure all deposits up to the limit. When a

The FDIC doesn't cap all deposits at the limit when they take over a bank. That would be insanity. What they do is insure all deposits up to the limit. When a bank fails, the assets are used to pay out the depositors (similar to a bankruptcy). If the assets are enough to cover 90% of deposits, then depositors will be made 90% whole. The insured amount is the *exception* to this process, where your amounts below the insured limit will be made whole even when there is an asset shortfall. I don't think the law would allow the FDIC to cap depositors at the insurance limit, even if the underlying assets are enough to make the depositors whole.