> It was paid out of unrelated bank-funded insurance. Every insurance system on the planet works like that, or is intended to, and FDIC insurance is no excepti

> It was paid out of unrelated bank-funded insurance. Every insurance system on the planet works like that, or is intended to, and FDIC insurance is no exception. Insurable risks covered by a large customer base. Institutions that present a higher risk pay higher rates. The FDIC cannot actually go bankrupt under any conceivable conditions because by law FDIC member banks are required to cover the costs, even extraordinary costs as might be presented by a major financial crisis. And fortunately the sector as a whole has ample resources to do so even under conditions as severe as the Great Depression. The $128 billion that the FDIC has on hand is nothing compared to the ~$7 trillion in bank assets in excess of liabilities that are backing it up.