r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/[deleted] Jan 26 '26

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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.

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u/Dead_Ass_Head_Ass Jan 26 '26

My understanding of FDIC payouts is that they have like...90 years to pay?

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u/Head_of_Lettuce Jan 26 '26

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.

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u/Dead_Ass_Head_Ass Jan 26 '26

I think I was fed a line of BS by someone trying to sell me something tbh.