HLS: “Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.”
In my opinion, there is negligible risk in relying on FDIC insurance coverage (up to the insured limits). Even if all the banks went belly-up, Congress would direct enough money to be printed to cover all the FDIC insured liabilities to depositors. I am sure of it. If you’re not sure, just look at what Chris Dodd and Barney Frank and Chuck Schumer are doing for politically powerful homeowners that had no insurance.
