[daepp]

The point is well taken that many banks have made bad decisions. But Indymac was taken over because it could not meet the withdrawal demand set off by Schumer. While they had a huge Alt-A portfolio, they were not even on the FDIC's watch list of 90 troubled banks.

But the larger point is that customers should leave their insured deposits be unless they need them. Do you think it's any wonder that Roosevelt coined the term "We have nothing to fear but fear itself" during the last major run on the banks.

And yes - we have a social contract with one another to do the right thing - which right now includes trying to minimize irrational behavior due to panicked depositors.

OTOH, I would not have uninsured deposts (i.e greater than $100K) at any marginal institution.