[boole1854]

> In support of this view, they could have easily extended FDIC on a dynamic metric, for example 20k for each employee.

Implementing any such "dynamic metric" would have taken time, which would mean they would not have been able to restore all deposits by Monday, which means a significant risk of contagion.

[Swenrekcah]

Also that would really have been an example of arbitrary changes to the rules on the fly.

[cornholio]

They can make those rules and preparations beforehand, for the next SVB, Signature etc. Banks would definitely want to optin under such a protective regime and have their systems ready since it alleviates customer panic in an event of a liquidity crisis.