> Banks are backed by the FDIC which in turn is backed by the Fed, you cannot have a bank run anymore. It's not possible.
Yes, it is possible. FDIC doesn't insure all deposits. Typically you're capped at X thousands across all your accounts. I'm not sure what the current value of X is, 250?
That said, a bank run is improbable. Also, be careful with cash holdings at investment institutions. Those are typically not FDIC ensured, especially if your cash is held in a money market account.
> Yes, it is possible. FDIC doesn't insure all deposits. Typically you're capped at X thousands across all your accounts. I'm not sure what the current value of X is, 250?
This is not correct. The FDIC is very concise with their commitments.
> A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.
Yeah, the UK had a bank run (Northern Rock) during the financial crisis in 2007. Once confidence was lost, some of the run was people with more money than our insurance limit in there, the rest ordinary small depositors who didn't feel like trusting an untested insurance mechanism when they could have banknotes.
That run was stopped by the government guaranteeing all assets and nationalising the Rock. That's not likely to happen with crypto.
Yes, it is possible. FDIC doesn't insure all deposits. Typically you're capped at X thousands across all your accounts. I'm not sure what the current value of X is, 250?
That said, a bank run is improbable. Also, be careful with cash holdings at investment institutions. Those are typically not FDIC ensured, especially if your cash is held in a money market account.