[easton]

In writing yes, but the FDIC always makes depositors whole somehow. Otherwise the banking system would collapse.

If some bizarre scenario were to happen (a failure of two of the big four) which the FDIC couldn’t recover, in the words of Dwight Schrute, “you’ve all been dead for weeks”.

[dragonwriter]

> but the FDIC always makes depositors whole somehow.

This lie keeps getting repeated, but while it usually manages to do that (by facilitating a buyout, often before or over a business day – sometimes longer in calendar time because of a weekend – when the bank is closed), it doesn’t always, even when it facilitates a buyout rather than being forced to create a takeover bank.

When it does takeover without facilitating a buyout, it never protects uninsured deposits without invoking the systemic risk exemption.

> Otherwise the banking system would collapse.

Well it does where the banking system would collapse, that’s literally the point of the systemic risk exception.

[Alupis]

> the FDIC always makes depositors whole somehow. Otherwise the banking system would collapse.

When was the last time any of this happened?