hannotek - Nostr Hypermedia

The FDIC’s favorite line is true: no insured depositor has lost a penny since 1934. In March 2023 that line needed an asterisk. SVB, Signature, and First Republic failed inside weeks. The $250,000 cap was overridden by a systemic-risk exception. Most of the ~$18.7 billion hit to the Deposit Insurance Fund came from covering deposits above the limit. GAO had flagged both SVB and Signature since 2018. The OIG later said the agency wasn’t ready. The response since has been to loosen merger review, not tighten supervision. The cleanest government-corporation design in the set still became an implicit guarantee the week it was tested at the speed of a group chat.

FDIC's Cleanest Design Still Broke Under Real Pressure in 2023

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