Comment by dylan604
16 hours ago
> When the bank goes belly up, your deposit is FDIC secured up to the account limit which is tiny in the scale of things.
The FDIC is meant to protect individual people from loosing all of their money from the collapse of a bank, currently at $250k. If you have more wealth than that yet have it all as cash in a single account, then, you're pretty much an ID10T. For regular mere mortals, that's a helluva lot better than a bank telling you to pound sand when they collapse. If you're a business thinking the gov't is meant to protect you, then you are also delusional.
> If you have more wealth than that yet have it all as cash in a single account, then, you're pretty much an ID10T.
SVB collapse has shown that the 250k limit is basically not relevant. Maybe if a big consumer bank like Chase failed then 250k would be the max paid out, but we haven't seen that.
And OP is referring to Synapse, where the FDIC could not help any of the americans who lost their savings because the underlying banks didn't fail. https://www.cnbc.com/2024/11/22/synapse-bankruptcy-thousands...
> SVB collapse has shown that the 250k limit is basically not relevant
Only as long as you're too big to fail...