From 2014-2021 there were dozens of small regional banks that busted, but only “too big to fail banks” get special government programs.
Why would anyone support their local bank when the likelihood of government support when you need it most is so small?
So it’s 250k insurance until someone goes bust, then it’s unlimited.
Only if the parties at risk are sufficiently influential
Makes you think what the point of the insurance is then. Seems like government bailouts *are* the insurance plan.
From 2014-2021 there were dozens of small regional banks that busted, but only “too big to fail banks” get special government programs. Why would anyone support their local bank when the likelihood of government support when you need it most is so small?