[basil_hayden]

I'm befuddled by the fact that I struggle to afford a meager American lifestyle, yet apparently I can also behind the scenes pay for everyone else's mac daddy phat lifestyle.

Damn I must be good.

[TommyJefferson]

$this->bbcode_second_pass_quote('basil_hayden', 'I')'m befuddled by the fact that I struggle to afford a meager American lifestyle, yet apparently I can also behind the scenes pay for everyone else's mac daddy phat lifestyle.

[Tyler_JC]

There are a lot of people with more than $100,000 in a single bank account.

We haven't raised that number since the 1980s and thanks to inflation, it's becoming increasingly common for upper middle class people to have that much cash.

They should have indexed the insurance level to inflation.

Take Bill Gates for an extreme example. He has at least 10 billion in cash (give or take a few billioni).

That means he would need to find 100,000 separate banks in order to deposit all of that money safely.

Unfortunately we don't have anywhere near that many banks. As a a result, most of his money is uninsured.

[Kingcoal]

You mean poor old Bill Gates might lose some money?

[Serial_Worrier]

$this->bbcode_second_pass_quote('Kingcoal', 'Y')ou mean poor old Bill Gates might lose some money?

[Tyler_JC]

$this->bbcode_second_pass_quote('Kingcoal', 'Y')ou mean poor old Bill Gates might lose some money?

[qwanta]

$this->bbcode_second_pass_quote('Tyler_JC', 'T')here are a lot of people with more than $100,000 in a single bank account.

We haven't raised that number since the 1980s and thanks to inflation, it's becoming increasingly common for upper middle class people to have that much cash.

They should have indexed the insurance level to inflation.

Take Bill Gates for an extreme example. He has at least 10 billion in cash (give or take a few billioni).

That means he would need to find 100,000 separate banks in order to deposit all of that money safely.

Unfortunately we don't have anywhere near that many banks. As a a result, most of his money is uninsured.

[hope_full]

I don't think it's any big surprise that so much money is NOT protected by FDIC. It was intended to protect Mom and Pop Savers from the unexpected collapse of their friendly neighborhood savings and loan. It was never engineered to protect 300 million citizens from system-wide failure and the end of civilization.

I don't like the headline because it's nonsensical. Did anyone really believe that every dollar in every bank is protected by the federal government?

[idiom]

Slightly before the crash, Something like 3 million Americans had net assets over 1 Million Dollars excluding their primary residence.

Also, of the money that is insured, it is not all insured at the same time. The first 50 billion or so gets covered and eveyone else is then uninsured. I think.

[MrBill]

I would assume the majority of the uninsured money belongs to corporations and not individuals. Corporations should have counterpart limits in place where they limit the amount of funds per institution based on their credit rating. This protects them from individual bank failures. In the case of a systemic bank failure then the Fed is the lender of last resort in any case.

Individuals are covered up to $100.000 per account per bank if I understand correctly. Therefore, if they have more they can keep it with more than one bank. Money market instruments bought from the bank are not part of the bank's own capital. Those funds are segregated and subject to different treatment.

Segregated brokerage accounts are covered by another insurance scheme that licensed brokers are compelled to pay into. Again those accounts are not part of the broker's own capital and belong to the client in case of bankruptcy. In the case of a shortfall the insurance scheme pays up. If it is empty then likely the taxpayer.

If there is a systemic failure and $2.62 trillion suddenly disappears then likely your $100.000 is not worth squat in any case.

[IslandCrow]

And over here in Finland my protection is only for € 25 000 (currently about US$ 40 000)!

Although the way the dollar is tanking I might soon have the same protection as in the States.

[3aidlillahi]

$this->bbcode_second_pass_quote('', '
')Take Bill Gates for an extreme example. He has at least 10 billion in cash (give or take a few billioni).

That means he would need to find 100,000 separate banks in order to deposit all of that money safely.

[Specop_007]

Seeing as the Feds couldnt pay out on the insured amounts anyways I 'm not really concerned about the "uninsured" amount.

[yesplease]

$this->bbcode_second_pass_quote('MrBill', 'T')herefore, if they have more they can keep it with more than one bank.

[charliebrownout]

$this->bbcode_second_pass_quote('Kingcoal', 'Y')ou mean poor old Bill Gates might lose some money?

[smallpoxgirl]

$this->bbcode_second_pass_quote('charliebrownout', 'I')'m guessing that even if he only got back .50 for every dollar he'd still be filthy rich.

[Pretorian]

What kind of bank are those, with 12mln in deposits and 14 in assets? Piggy banks?

[Cashmere]

That's right folks. There's a new method of preventing a run on a bank. It's called - tell the big depositors to screw off if they smell trouble and they want their money out. Wow. That sure makes me more comfortable.

This is a whole new step toward a completely government run country. The best part is that they're saying that this is to maintain depositor confidence. BuuuuuuuuYaaaaah!@!
$this->bbcode_second_pass_quote('', 'T')he new FDIC rules will require banks to standardize the information they provide on deposit accounts and to establish systems to <i><b>automatically place holds on accounts with large deposits,</i></b>