Re:What is the Eurodollar System? (2020) [pdf]
by lottin on Sunday April 10, 2022 @03:29PM
(#30980798)
If all banks go bankrupt at once, sure, the insurance will also go bankrupt.
[ Parent
| on HN ]
Re:What is the Eurodollar System? (2020) [pdf]
by butlerm on Monday April 11, 2022 @10:26PM
(#30997883)
The problem is that the banking system carries a large systematic risk of going bankrupt all at once, and deposit insurance is not adequate to deal with that. The real guarantor of your deposits is the Fed not the FDIC, and fortunately they did a bang up job of it last time around.