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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by loourr on Monday August 09, 2021 @10:01AM (#28116934)
I think your criticism is a bit misguided. The FDIC insurance fund only covers a tiny fraction of bank deposits and if a single small bank had a run the fund would be insufficient to cover it's customer base. It also covers derivative losses before balance losses, so it's really more of a psychological tool then anything else.

Also banks are investing all of your money in highly illiquid risky assets (aka mortgages) so I don't see how this would ruin the economy or even meaningfully change the risk profile if adopted at a large scale.

Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by rrrrrrrrrrrryan on Monday August 09, 2021 @10:51AM (#28117659)
> The FDIC insurance fund only covers a tiny fraction of bank deposits

Isn't it $250,000 per customer?

It wouldn't be enough to save the bank if there was a run (because of accounts with huge balances), but it'd be enough to save most of the customers that need saving.

Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by notyourday on Monday August 09, 2021 @12:23PM (#28118810)
It is a per-signator per-bank per-type per-POD
Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by Cola on Monday August 09, 2021 @10:56AM (#28117719)
I wouldn’t say 250k per person per bank per account type is a tiny amount. Moving money from a bank account to the market is a significant increase in risk for all but the most wealthy.
Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by jaywalk on Monday August 09, 2021 @11:31AM (#28118158)
I wish I had so much money that $250k was a tiny fraction of it.