Is there some advantage to not having FDIC or SIPC insurance? Is it that you just can't be bothered to break up your accounts between bank or use a distribution method like CDARS? Yes you are unlikely to lose your money as a depositor, but it has happened as recently as the 2008 GFC when ~10k people lost a combined $270M at IndyMac. Yes, if BOA fails we have other big problems, but that's precisely the time that the FDIC will be strapped for funding and might not be able to extend the deposit insurance past its explicit limits. After all, the stated reason for bailing out SVB and First Republic was to maintain confidence in the banking system and prevent contagion. If BOA goes under, all that will have already happened.
I'd be more nervous about not having FDIC insurance than I would be about flying in a commercial plane where the life vests are in fact not under the seat as expected. After all, I can swim a bit and none of the passengers on US Air 1549 went in the water, right?
I'd be more nervous about not having FDIC insurance than I would be about flying in a commercial plane where the life vests are in fact not under the seat as expected. After all, I can swim a bit and none of the passengers on US Air 1549 went in the water, right?
Statistics: Posted by bd7 — Sun Jun 02, 2024 11:50 pm