Patient,
I AGREE with you.. My comment was pretty clear.

My point was that depositors will be made whole, it just may not be possible THE NEXT BUSINESS DAY.
It could be weeks, it could be years. I DON’T KNOW.

From memory, I think that the recent FDIC bank failures (3 in 2007 and 3 in 2008 so far) The largest had 175,000 accounts…

If a HUGE bank were to fail, you are talking millions of accounts. Potential $100,000 x 1 million = $100 BILLION ++
(per million accounts)

Of course many people don’t have $100K, but retirement accounts are insured up to $250K..
The POTENTIAL exposure is beyond belief, and everybody seems comfortable that it just won’t happen.

They can transfer statement balances around all they want, the withdrawl of CASH the NEXT BUSINESS DAY will not be possible. They couldn’t print the bills that fast.

I’m not saying that it will happen, but if you expect the 500 year flood and be prepared, and you’ll never be surprised.

I talked to a life insurance exec about 9/11, he said that payouts weren’t a problem for most, just a blip.
The UNKNOWN is a WW2 type event, losing million+ lives in a short time period.

Disasters happen, 32,000++ DEAD from one little earthquake in China last week. Myanmar, Katrina, etc..$!*& HAPPENS!

If someone is comfortable having UNinsured funds because of what the charter states who I am to argue ?