“$250k is safe and guaranteed.
In every bank you put that sum into”
That’s the theory, I’m just wondering if they s*** hits the fan so hard that can even FDIC fall apart?
They went negative a time or two during crises, but there was no impact on its ability to do business. In the 2008 crisis, they made solvent banks pay several years worth of advanced insurance premiums to get through because there were hard feelings between FDIC leadership and the politicians at Treasury and the FDIC didn't want to draw on the Treasury line of credit. ($100 Billion).
My recollection was that the RTC was always underwater.
FDIC is going to have to bailed out by Congress in the next couple of years—you can take that to the bank.
Congress will do it though—this is like the “do it or I will shoot this dog” scenario—if bank deposits of average folks are not protected the economy will go back into 1930s Depression mode.
No Congress-critter wants to be sitting in their chair when that happens.