Nah, FDIC-insured funds are available the next business day in every bank failure. Funds over the limit could be locked up but their primary goal is to make sure that $250k is ~immediately available.

Would that actually be case if a dozen banks failed in single day or a hundred? Does FDIC have enough man power to handle all of these banks at one time simultaneously?

I suspect that’s why they are offering 1.5-2x comp for SVB employees at the moment. They know the SVB systems. They are these power to get out of the situation.

I imagine the same would happen in other situations.

What? AFAIK the FDIC just keeps paying employees as normal. Where’d you hear about 1.5-2x comp, except perhaps in the event they’re hourly employees working overtime, which would just fall under normal overtime rules not some special FDIC bonus.

They are paying 1.5x for retention.

Employees at SVB have roughly the same game theory decisions to stay or leave as depositors did. It costs nothing to leave right now and go work for a rival bank, but the last person out the door is going to have a very hard time… there are only a certain number of jobs / job opening for their roles so the FDIC did indeed offer a premium to keep them around.

https://www.forbes.com/sites/jackkelly/2023/03/11/some-silic...

Dozens of banks, very likely yes, hundreds - probably not the next day but the ability to resolve dozens should be enough to prevent hundreds from needing help.