Comment by liontwist

That is not true. All the banks must satisfy the same regulator. None of them are going to take a risk that invites audits from the big cheese to get your 20k in savings. The legal term to avoid here is “unilateral action” - don’t do what the other banks aren’t doing.

The list of problematic people is even shared between them by the regulator.

Due to the savings and loan crisis there is no longer a plurality of banking businesses each with their own independent thinking. There are 10 marketing corporations for the same government service. Same with mortgages.