[rhaway84773]

When was the last time non politically connected depositors lost money from their checking accounts?

The only “moral hazard” being created here is encouraging people to deposit money in smaller banks.

If the govt hadn’t created the “moral hazard” then people and businesses would simply have chosen to do all their banking with the much safer big banks like Chase and Citibank.

The reality is that Americans don’t want all banking to be concentrated in the hands, but smaller banks are significantly more risky and inefficient. Depositing money in the smaller banks and not just the top handful is the “moral hazard” that has been created by government intervention.

[TMWNN]

> When was the last time non politically connected depositors lost money from their checking accounts?

Many times. The typical uninsured depositor in bank failures from 2008 to today got about 75 cents on the dollar.

Depositors in IndyMac in 2008 got 50 cents on the dollar.

[Scoundreller]

> The only “moral hazard” being created here is encouraging people to deposit money in smaller banks.

Or everyone, nationwide, starts moving every penny they have into whichever bank, anywhere, offers the highest interest rates, without regard to how they accomplish that. Let's call it "risk intensification".