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No, that has not happened in 15 years. Every bankruptcy since IndyMac has ended with depositors being made whole. The precedent is a lot older than the recent b
by ummonk 4y ago
No, that has not happened in 15 years. Every bankruptcy since IndyMac has ended with depositors being made whole. The precedent is a lot older than the recent bank failures.
- smcin 3y agoAnd what I said is banks used to be allowed to fail (and FDIC wasn't directed to make depositors in excess of the insurance limit whole). Ok so the last time reserves didn't cover depositors was 2008 not more recent. My remark is that alloeing banks to fail is no longer happening, and that's setting a really bad moral hazard. Some even suggested during SVB there should be infinite FDIC coverage for 2 years, which would have destructive side-effects towards the end of that period. It's strange to hear people (esp. libertarians) complain about the politicization of the IRS (Taibbi/Twitter Files), but not the FDIC.