[BCM43]

Is this any different without steps 5 and 7? I don't understand how the FDIC actions change the incentives here.

[paulddraper]

Presumably, #2 is only possible with a government guarantee for depositors.

[Dem_Boys]

The FDIC's actions indicate that the insured deposit limit is really unlimited instead of the advertised $250,000.

This takes away a huge risk associated with recklessly handling depositors money because now the FDIC will swoop in and make ALL depositors whole.

[fidgewidge]

Way fewer people hate you at the end, which is a meaningful disincentive otherwise.

[rullelito]

A lot of people would lose money and the system would have to change.

[auntienomen]

Can't do 8 without those!