Quote:
Originally Posted by Cliff
That's right there is no FDIC here.
Cliff
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Here in the US, the FDIC doesn't really do what most think it does anyway.
The FDIC is supposed to insure individual depositors against a loss due to a bank going under. Sure, it still does do that, but it just doesn't come down to that anymore.
For the most part, the FDIC's current job is to take a bank that has hit the insolvency point and find a healthy bank nearby that will absorb the assets. It usually happens on a Friday. Unless you know an insider at the bank you will not hear about it until Monday morning when they issue a release stating that X bank is no more and all customer deposits are now located at Y bank. The customers never lose access to their money and no insurance comes into play.