FDIC Insurance

This isn't a single user, FDIC insurance is for $250k per user per bank. The point is that for regulated banks that number is clear and if you exceed it you will be aware of it, and if you haven't exceeded it you have a federal guarantee to recover your money. What assurance does anyone have in this case?

The FDIC insures deposit accounts (savings, checking, money market deposit accounts, and certificates of deposit) only and there’s a cap of $250K at any single institution. I’ve no idea what accounts this bank offered, but anything in excess of that cap or held in, for example, mutual funds, stocks, etc are uninsured losses. Those people the article mentioned specifically called out retirement savings, so they very well may not have been in insured deposit accounts.

> What if your bank is not a member of FDIC ?Then don't do business with that bank. The vast majority of banks and credit unions in the US offer insured accounts. If yours doesn't you should move your money elsewhere.The FDIC insurance is $250k per insured-account-type per institution. That is, if I have a checking and a retirement account with one bank I'm insured for a total of up to $500k. Anything exceeding that needs to be in another account type or another bank to b

This isn't bitcoin world though, deposits are FDIC insured to stop this

This is why banks are FDIC insured (in the US).

Aren't the accounts insured by government entities like the FDIC in the US?

FDIC is insurance, it's not a backing asset. And it's limited to 250k USD.

Doesn't FDIC, as with most depositor protection schemes, have an upper limit on the amount protected - $250K in the case of FDIC:http://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corpo...

FDIC covers only up to 200k USD. Many people have lost life savings when banks collapse. Also, not everybody lives in the US or in countries with a semi decent banking system.

Does it matter? They're FDIC insured.