> must meet certain requirements in regard to their ability to pay large claims [...] states and the federal government regulate banks to minimize the risk that

> must meet certain requirements in regard to their ability to pay large claims [...] states and the federal government regulate banks to minimize the risk that they end up needing FDIC funds Deposit guarantees have a ceiling, and in the US that's about three times lower than the median CA home value. It also pays out after the bank is no longer solvent. That kind of regulation does not (and here I am quoting it for the third time) "ensure the solvency of insurers", or banks in your example. Which was specifically what I replied to.