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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by nabla9 on Sunday March 12, 2023 @07:10PM (#35127810)
> FDIC insurance is essentially unlimited, as long as you can threaten wider disruption to the economy.

I think you misunderstand. Unlike bailout, FDIC insurance means that

1. Shareholders owners are wiped out,

2. Senior management is removed.

3. Unsecured debtholders *will not be protected*. They are made whole only when it's possible using banks assets.

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