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I haven't looked lately, but in the early days of the Bush-administration mortgage crisis it was pointed out that the banks with the six largest amounts of FDIC-insured deposits *each* had more such deposits than the FDIC's total reserves...

There have been a lot of changes in bank regulations since then.

and the largest one by itself would have wiped out the FDIC if it had been unable to pay off a mere 10% of its insured deposits.

Which is precisely the reason that Dodd-Frank requires banks with more than $50B in assets to create living wills. Here's an article that explains living wills: And here's the webpage from the Fed's website with more information about the requirements and specific banks:

Since we now know that the FDIC's response to the failure of a big bank is to merge it with a bigger bank, I would guess that probably the situation has gotten worse.

My guess is that that's no longer the response for large banks.

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