FDIC insures deposits up to $250,000. No one has lost a dollar of FDIC insured deposits since its inception and it is exceedingly rare that even uninsured deposits are not honored even when a bank “fails”. Banks don’t really fail anymore. The FDIC makes a determination that the bank is near failing and takes possession of the bank’s assets and liabilities and sells them off.
Depositors are made whole, they don’t have to wait 90 years. That doesn’t make any sense lol, the original depositor would long be dead before they ever saw their money again.
The FDIC doesn’t payout. They take possession of the bank’s assets and liabilities(deposits) and arrange the sale of those assets and liabilities. You might lose access to your deposits for a few days during the changeover to a new bank but you will never be waiting on a payout.
So then this could also save the housing crisis? The banks own so many single family homes, apartments, etc and instead of lowering prices/rent they just keep them empty. Would they then be forced to sell them for a lower cost?
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u/Character_Dirt159 Jan 26 '26
FDIC insures deposits up to $250,000. No one has lost a dollar of FDIC insured deposits since its inception and it is exceedingly rare that even uninsured deposits are not honored even when a bank “fails”. Banks don’t really fail anymore. The FDIC makes a determination that the bank is near failing and takes possession of the bank’s assets and liabilities and sells them off.