[Theoria]

The system was 250k. That was the deal.

This is rewards the people who didn’t plan for such conditions and now are able to have their money insured by the gov with no premium paid on such risks. What a deal.

[Alberta's Child]

We've discussed this at length here on various FR threads. Here’s the simple banking dilemma that illustrates the problem with a $250,000 FDIC insurance limit:

Suppose someone buys a home for $400,000.

As part of the closing process, a payment of $400,000 is made from one bank account (on behalf of the buyer) to a closing agent. The proceeds of the sale are then paid to the seller.

How does this process get done without exposing 2-3 parties to the risk of losing the money in a bank failure?

Is anyone in this process "reckless and irresponsible" for getting involved in the sale of a property in excess of a $250,000 FDIC limit?