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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 voisin on Sunday March 12, 2023 @11:12PM (#35130505)
> broadcast that FDIC insurance is essentially unlimited

Shouldn’t it be? The government is in the best position to regulate and manage the risk of these institutions. We cannot expect average depositors to be financial analysts with the capacity to assess financial institutions.

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Re:Joint Statement by the Department of the Treasury, Federa... by xmonkee on Sunday March 12, 2023 @11:14PM (#35130528)
what’s stopping a bank from making really risky loans, give super high yields? Everyone will go to that bank since there is no risk to them?
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Re:Joint Statement by the Department of the Treasury, Federa... by bandrami on Monday March 13, 2023 @02:37AM (#35131926)
Because that's not how modern banking works. This isn't George Bailey lending out deposits; retail banks don't use deposited money at all it just kind of disappears.
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