[Locke1689]

The endgame security isn't provided by Wells Fargo, it's provided by the federal government.

[afterburner]

Not security, insurance.

[logn]

I'm not sure why he was downvoted. FDIC isn't the only insurance. Banks have other insurance to protect against theft.

Also, banks are protected in a way since they don't really hoard cash or valuables. They invest it which spreads out the risk.

Furthermore, the federal government will go after criminals to recover money. Good luck getting them to help you with BTC theft.

[Locke1689]

Same result.

[afterburner]

People in the thread were talking about computer security mostly, though. In the end, the best "protection" is that insurance will reverse your losses in case security fails. Something a lay person "securing" their bitcoins on their own computer won't have.

[drivebyacct2]

Items not covered by FDIC: "Losses due to theft or fraud at the institution."

http://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corpo...

[Locke1689]

FDIC Regulation-E.

Consumer liability for unauthorized transfers. The consumer has limited liability if reported expediently.

You should read up more closely on the FDIC regulation -- they don't just provide insurance.

http://www.fdic.gov/regulations/laws/rules/6500-3100.html#fd...

Also, a clever little loophole: if the bank goes insolvent paying their accounts back, you are then covered under FDIC insurance.