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A comment on Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse. Parent comment

Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in... by shkkmo on Wednesday November 16, 2022 @10:16AM (#33624412)
We haven't seen any indication that a wave of bank failures is coming. We haven't seen any failed banks in a couple of years.

Now, that could change and we could see a recurrence of the wave of bank failures that started in 2008 and slowly tapered off, but you argument for that can't just be a hand wave at "trying times" and "fractional reserve" because the numbers currently show the opposite: https://www.fdic.gov/bank/historical/bank/

Still smart to keep total accounts per type per bank under the insurance limit (currently $250,0000), and to directly verify that your accounts are actually insured using the FDIC's tool: https://closedbanks.fdic.gov/aii/

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Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in... by kmonsen on Wednesday November 16, 2022 @10:30AM (#33624702)
Did any depositors loose money in 2008 from bank failures? If not when was the last time regular depositors lost money?
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Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in... by roywiggins on Wednesday November 16, 2022 @10:39AM (#33624881)
Right, even US depositors over the FDIC insurance limit didn't lose money in 2008 as far as I remember? The failing banks got taken over by bigger banks, which were bailed out as necessary.
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Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in... by shkkmo on Wednesday November 16, 2022 @11:49AM (#33626219)
I don't think that information is public to protect privacy...but any balances over the limit in a failed bank would result in non-insured losses.
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Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in... by jmalicki on Wednesday November 16, 2022 @01:38PM (#33628218)
That's actually not true [1] - the FDIC has continued the practice of covering balances over the insured limit despite not being required to.

[1] https://www.americanbanker.com/opinion/will-fdic-keep-protec...

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Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in... by shkkmo on Wednesday November 16, 2022 @07:54PM (#33633443)
Interesting, glad they're doing that but ok probably best not to count on that policy if you don't have to.
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Re:Genesis' Crypto-Lending Unit Is Suspending Withdrawals in... by danuker on Wednesday November 16, 2022 @11:50AM (#33626246)
In 2008, no. "No depositor in an American bank lost a penny to a bank failure." [1]

But they were bailed-out by larger banks, and eventually the taxpayer. Next time, there might be bail-ins instead. [2]

[1] - https://www.investopedia.com/articles/economics/09/financial...

[2] - https://www.investopedia.com/articles/markets-economy/090716...

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