[yzmtf2008]

Let me put it this way.

I put the majority of my cash in one of the smaller banks. The news that has transpired in the past few days had me mulling moving those funds to a larger bank, likely Chase (one of the too big to fail ones).

Even with the FDIC guarantees, I was not at all confident that :

1. they actually had the funds to cover _many_ bank runs; and

2. it won’t take weeks if not months for me to recover my funds, if my bank fails.

It’s entirely possibly that these lines of thoughts will motivate many more people to consider this exact move, putting even more stress in the system.

[ericpauley]

The FDIC is backed by the full faith and credit of the US government. If a bank fails, your insured deposits will be made while, usually the next business day.

[twblalock]

That's true, but many people will still freak out anyway.

[notch898a]

Will changes to probably in the context that FDIC only has reserves of approximately ~1% of the total insured value.

[ghastmaster]

With the Bank Term Funding Program, people who moved or previously kept monies in large banks have less incentive to do so, until 2024 when this program is scheduled to end. That is, if they think 25 billion is enough to prevent more runs, and the FED/treasury/FDIC will not greatly expand that in the event of another run.

[vel0city]

IMO you should probably do business with multiple banks with somewhat separate market segments to try and diversify risks. You shouldn't have all your cash under one mattress ;)