Could people lose money in banks in the new stock market crash?


Share |

Just like in 1929. What protections are in place to prevent a repeat of people losing a crapload of money in the banks just like in the year of our Lord 1929. Is FDIC coverage Guaranteed and could there be circumstances where FDIC coverage could be ignored and a millionaire with 10 million in the banks has...


Answer (2):

meg

Banks can not make loans using stocks as collateral like the did in 1929 so a stock market crash can not cause the sort of problems that it did then. FDIC does not guarantee large deposits against losses if banks fail.

challenger

FDIC was created in 1933 so no, banks will not fail because of the stock market. Give it time, the market will turn around.


Relevant answer in New Market, IN