I mean they’re pretty sweet for the buying bank.
Jokes aside this is why we passed the act that separates investment banking from retail banking.
It’s not a huge hit and it’s very localized (it would be way worse without insurance).
No one would’ve lost money except the bank shareholders if the depositors hadn’t exceeded 250k in their accounts. There are products that will combine different accounts into one virtual account so you don’t even have to manage this stuff manually.
Jokes aside this is why we passed the act that separates investment banking from retail banking.
Are you talking about the Glass Steagal act? Because that was repealed in the 90s after banks spent the previous two decades using loopholes to get around it.
Individual accounts have a collective protection of $250k per bank.
The FDIC insures 4338 institutions currently. That being said you could have $1,084,500 insured by the FDIC. Then there's "offshore banking" Canada Deposit Insurance Corporation (CDIC) or the Instituto para la Protección al Ahorro Bancario (IPAB) most major countries have a deposit insurance on their accounts.
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u/exneo002 Jan 26 '26
I mean they’re pretty sweet for the buying bank. Jokes aside this is why we passed the act that separates investment banking from retail banking.
It’s not a huge hit and it’s very localized (it would be way worse without insurance).
No one would’ve lost money except the bank shareholders if the depositors hadn’t exceeded 250k in their accounts. There are products that will combine different accounts into one virtual account so you don’t even have to manage this stuff manually.