[Virginia Ridgerunner]

Despite assurances by the federal government that it guarantees deposits of up to $100,000, customers descended upon bank branches to yank out their money on Friday, hoping it was still there.

But yet the FDIC said that it did NOT have enough money to cover the $188 billion in deposits. That's why WaMU was sold so quickly to JP Morgan.

[Dilbert San Diego]

This points up that the FDIC doesn’t have enough money in its insurance fund to handle massive bank failures. The mere existence of the FDIC is supposed to calm people down and prevent runs on banks.