[hoytschermerhrn]

It’s simply unrealistic for businesses to not exceed the $250k insurance limit.

[eropple]

Both insured sweep accounts and non-FDIC depository insurance exist.

[gameshot911]

You can buy insurance to protect amounts above $250k.

[ummonk]

That just moves the source of risk to the company selling you that insurance. If they go under as well, then that insurance is worthless.

[tomp]

Which insurance company can pay out a $40bn risk event?

[AH4oFVbPT4f8]

Exactly this, take out insurance, open additional accounts so that the companies livelihood is not dependent on a single bank. What about all the companies who funded all these 'companies' ? Why aren't they stepping in to clean up the mess?

[avalys]

And who ensures that the insurance company has enough capital to pay out on that insurance?

[consumer451]

I had no idea that was an option. My google-fu is failing me, what is that called? Who are the providers? Seems like it would be a mega capital intensive insurance product.

edit: this is way out of my wheelhouse, so an actual answer would be educational.

[noelsusman]

We solved this problem decades ago, these businesses chose not to use the tools available to them to protect their money.

https://www.intrafinetworkdeposits.com/

[peyton]

It’s silly. Either way, the money’s coming from the insurance fund. FDIC claims insurance is “at least” 250k.