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submitted 1 day ago by The_Picard_Maneuver@lemmy.world to c/memes@lemmy.world

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[-] WoodScientist@sh.itjust.works 20 points 1 day ago

Hmm, are you still covered by the FDIC if you deliberately engineer a bank failure? Let's say all of Bank of America's customers decided that they just really wanted to fuck BoA hard. So they arrange to all demand the complete liquidations of their accounts, all at once. Or maybe people arrange a series of bank failures as part of some broader political movement. But hypothetically, if a group of people deliberately caused their bank to fail, would their deposits still be FDIC-insured? In other words, if you deliberately arrange a bank run, will you still be covered by FDIC insurance?

[-] DannyBoy@sh.itjust.works 7 points 18 hours ago* (last edited 18 hours ago)

It'd be hard to prove a single participant. An organizer, maybe? But if you just heard everybody's doing a bank run on the 20th and you're scared of the stability of your bank, so you decide to withdraw your money on the 19th so you can put it into another bank, that seems reasonable.

(i know nothing about digital transfers between banks)

[-] Aneb@lemm.ee 2 points 14 hours ago

Hi, I don't think my withdrawal of $20 from my collective accounts with BOA would really cause a failure... but I'm willing to try! Sincerely, -Poor

PS there are no ethical millionaires

[-] bestagon@lemmy.world 16 points 1 day ago

It exists to cover bank runs and it is your money. There is nothing wrong with wanting your money in any given moment. That’s just my take though, I’m not a lawyer.

I think it’d basically defeat its preventative purpose though if a story got out that people weren’t covered, even in an engineered bank run. What if you’re not in on the plot? What if it happens tomorrow at your bank? Are you just fucked too? Better withdraw all your money to be safe

[-] WoodScientist@sh.itjust.works 5 points 18 hours ago

What a potentially powerful tool of protest. Imagine if you got a movement of a few million people. They all move to a target bank. A few months later, they all demand their full account liquidation. Then you move on to the next megabank. One by one, drop them like flies.

[-] KinglyWeevil@lemmy.dbzer0.com 1 points 5 hours ago

With a few million people it doesn't even need to be a specific bank. It would cause an enormous problem. Especially since we're used to assets being digital these days. Request enough actual physical cash and it would rapidly reach a breaking point.