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The FDIC insurance fund is paid by banks, so ultimately depositors were "bailed out" by the broader banking industry.
by ahupp 3y ago
The FDIC insurance fund is paid by banks, so ultimately depositors were "bailed out" by the broader banking industry.
- rcme 3y agoI don’t really see how that’s relevant. Paying into the FDIC DIF is a legal requirement of the banks. It’s basically a tax. Somehow bankers have convinced everyone that they have impunity to mess up the financial system just because they pay a special tax. And if the FDIC is really going to offer unlimited depositor protection, they’re going to need a lot more than the 100-200B in the DIF.
- throwway120385 3y agoWhat would you propose as a system to replace the FDIC?