[sebzim4500]

>But that's not how it works!

I would imagine the people advocating for a 'bailout' (using the most generous possible definition here) want this to become how it works.

Like how in Germany the government guarantees every German bank balance.

I have enough problems, I don't want to have to worry that my bank balance will disappear unless I spread it around in order to abuse a technicality.

[ericpauley]

Spreading deposits around is not abusing a technicality. The limit incentivizes diversifying deposits because it reduces the risk of a single bank. Retail banks benefit immensely from the fact that much of their deposit base is smaller accounts that are less correlated. A bank handling only large deposits from a small number of highly correlated depositors is exactly what FDIC caps ought to prevent.

[colinjoy]

> Like how in Germany the government guarantees every German bank balance

… up to the amount of 100k per customer, so less than the FDIC guarantee.

There are additional, voluntary, insurances given by groups of banks. These are also limited and customers are not legally guaranteed a payout.

[luckylion]

> Like how in Germany the government guarantees every German bank balance.

Up to 100.000€, they don't guarantee it without limit, and they don't guarantee it for anything that isn't insured.

Greensill's insolvency recently got lots of media attention since local governments deposited large sums and were not (fully) covered by the normal mechanisms that protect private and business customers.

[orangepurple]

Same 100k limit applies in Switzerland too

[Semaphor]

> Like how in Germany the government guarantees every German bank balance.

It does? I didn’t know about that, and looking it up brings me to 100k per person guaranteed. Do you have a source for unlimited?

[reaperducer]

I don't want to have to worry that my bank balance will disappear unless I spread it around

If you have enough money to worry about having to spread it around, you have enough money to buy additional insurance for it, and/or enough money to hire someone to take care of those things for you.

"Oh, no! I have $250,000 in savings and now I might have to open another bank account to hold even more money! Woe is me!"

Can you even hear yourself?

[ghaff]

I can also pretty much guarantee that very few individuals with >$250K of savings are keeping it in a bank. It's in a brokerage account in some combination of bonds, money market, and equities.