[noelsusman]

We solved this problem decades ago, these businesses chose not to use the tools available to them to protect their money.

https://www.intrafinetworkdeposits.com/

[peyton]

It’s silly. Either way, the money’s coming from the insurance fund. FDIC claims insurance is “at least” 250k.

[ericpauley]

The point is that diversifying deposits across banks reduces the risk of failures happening in the first place, reducing FDIC payouts. This incentive structure completely breaks down if there's no cap.