The FDIC has never failed to pay 100% of insured accounts. Never. Not a single FDIC insured bank account has ever gone unpaid. Not one. Always 100% repaid.
What you “heard” is flat out wrong.
Until the FDIC fails. Which it is in the process of doing right now.
A good signal of this is their coverage of 100% of the SVP depositors, according to reports 95% or so above the $250k FDIC limit. This *breaks* FDIC.
FDIC as an insurer works with limited bank failures and a $250k per depositor per institution limit, and insurance premiums paid by the bank.
With ALL of SVP made whole, precedent becomes policy. The only way for the FDIC to "cover" everybody to the max is for more FED/Treasury printing.