[tzs]

> I trust the government-backed insurance of my funds for when the bank fails, but I don't trust the banks themselves one single bit.

If the bank fails because they just mismanaged handling the money, that I'm sure the insurance will save the day for the customers. The Feds will come in, check the books and figure out how much each depositor should have and cover them.

But what happens if the bank fails for more malevolent reasons? Say state-sponsored hackers from somewhere that is pissed off at the US hacked in to a bank's back end systems and installed malware that corrupted the backups for a few months and then finally deleted the online records.

Does the insurance apply there? How do the Feds figure out how much everyone gets?