The rug pulls continued well into and past the 1930s, when bankers thought it would be funny to make an insurance pool out of tax payer money, thereby increasin

The rug pulls continued well into and past the 1930s, when bankers thought it would be funny to make an insurance pool out of tax payer money, thereby increasing deposits and business. It worked. Nothing fundamentally prevents it from happening again, state sponsored deposit insurance has expanded to more asset classes and deposit types several times. Deposit insurance is just a confidence game.