Makes me wonder if my bank goes under, will there BE any money left for the FDIC to bail out the depositors.
My guess, somewhere along the way, the answer will be NO, because they WILL run out of money. There just isn’t enough to cover all those “not marked to market” credit swaps the banks are holding.
When the FDIC exhausts its own funds, any other claims are put to the U.S. Government and become an obligation of the FedGov.
The Federal debt ceiling was raised to 10.3 trillion. There is actually nothing to cover anything. Private debt is another 10 trillion. It’s not a problem, we can pay it all off in ten years. Seven banks down 8000 to go. What is happening in other countries?