Because you don’t make depositors responsible for banks’ mismanagement unless you intend to create a depression.
Are you truly proposing that every time a bank fails we make everyone who kept money there take the hit?
A return to the 1920s, eh?
Are you truly proposing that every time a bank fails we make everyone who kept money there take the hit?
A return to the 1920s, eh?
Why is the government involved beyond that limit in this case? Could it be they want to give the average person peace of mind while retaining the flexibility to handle a restructuring however they deem best?
I also think that similar to "FDIC insured" labels in bank branches, FDIC should require posting "13% of deposits are FDIC insured" to help assess risk for those clients that have uninsured funds.