[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.