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by devman0 128 days ago
Businesses can use deposit management services to spread cash among many banks. Bonus points they also are less impacted by the poor business practices of one bank.

Individuals can do this too with investment brokers or wealth management providers.

Alternatively we could just made FDIC coverage unlimited, but then that creates poor risk taking incentives, which is the whole point of not setting the expectation of the a bailout by making exceptions.