Re:JPMorgan Chase Bank Assumes All the Deposits of First Rep...
by wrvajklj4 on Monday May 01, 2023 @11:56AM
(#35774672)
I get that the money goes brrrr attitude, but it's kind of silly.
The FDIC holds an adequate deposit insurance fund, financed by banks who must buy FDIC insurance. It's over $100 billion dollars, which is enough to weather some major failures. With large failures, the FDIC may issue special assessments to maintain the fund at a safe level (they did this with SVB).
> Most banks hold more assets than deposits. So in theory, depositors should always be made whole.
No such theory is established; it's the central bank's money printing ability that can always make depositors whole. In the US, the Federal Reserve implicitly backs the Federal Deposit Insurance Corporation.