Which depositors were screwed for not having the right connections?
> FDIC limit is theoretically a lifetime limit per individual
No. It’s not even a limit at the same institution, just per ownership category.
That is why the CRE loans are such a huge problem. Their debt is owed to regional banks, not the big ones.
That said, the FDIC ignored their playbook and rules to try to calm things down last March. A few more banks went down but not the numbers people expected. That means we're in uncharted territory.. will the FDIC follow their own rules next time or do whatever they want? We don't know.
Less than one year! We had three banks fail—the second, third and fourth largest in our nation’s history—less than one year ago [1]!
None were TBTF, let alone big five. Every deposit was covered. I get that the headline reads hysterically to a lay reader, but less than one year!
[1] https://en.m.wikipedia.org/wiki/List_of_largest_bank_failure...
Correct. The comment I responded to claimed unlimited coverage was limited to the Big 5. We're less than a year from non-TBTF (we let them fail for god's sake) non-big-five banks (a) failing and (b) receiving unlimited depositor coverage.
> That said, the FDIC ignored their playbook and rules to try to calm things down last March.
There's the SOP and there's what they did, there was no relation between the two which means we have no clue what they might do next time.