[lp0_on_fire]

Every bank account in the United States is insured up to $250,000 by the FDIC. I have zero sympathy for these depositors who decided it would be "too costly" or "too much hassle" to split their deposits into multiple accounts.

If you've got $25,000,000 dollars at SVB, you need 100 accounts. This is not rocket science. I really hope that they find a buyer to make depositors whole but if one cannot be found why should the public reimburse depositors for more than 250K simply because they were too cheap to hire a couple of accountants to manage it?

[salawat]

Incorrect.

Every depositor has 1 account per account type per institution insured up to 250k.

If you had 100 accounts of the same type at the same institution, you're still only getting 250k back from the FDIC.

To do what you're proposing, you'd have to have 100 accounts at different FDIC insured institutions. The logistics there is vastly different, but meshes quite well with designing for fault tolerance/resilience.

[simfree]

Brex offers a product to do this for you IIRC?

[Ekaros]

I don't expect everyone to essentially game FDIC insurance. And not sure if that is even possible or wanted.

But doesn't mean it is unreasonable to expect people with this level of cash funds not to have more than one egg basket. Split it in two, three or four. One goes down, you still have money locked up but can use other accounts to take care daily operations and possibly mitigate some of the issues.