The FDIC will quickly be out of the equation.
The FDIC has capital of about $2 billion (as of about a year ago). If one of the “Top 4” goes, you can forgeddabout FDIC. We’ll be looking at a systemic failure the likes of which the FDIC is a grain of sand in the Sahara.
The FDIC has capital of about $2 billion
The $2 billion has to cover depositors up to $250k each.
So they could make 8 thousand depositors whole if all had the maximum exposure?
One word to summarize this situation: BOHICA