Two Big Ideas for Preventing Another Banking Crisis

By Joe Nocera and Michael J. de la Merced

Last year, Marc Lasry, the owner of the Milwaukee Bucks basketball team, revealed that its star player, Giannis Antetokounmpo, at one time had been putting his money in 50 banks, with no single account holding more than $250,000. Why? Because Antetokounmpo wanted every cent to be insured by the Federal Deposit Insurance Corporation. And $250,000 is the cap on insured deposits….“Ever since the S.&L. crisis in the 1980s, everyone gets rescued,” said Karen Petrou, a co-founder of Federal Financial Analytics, referring to depositors.

https://www.nytimes.com/2023/03/18/business/dealbook/banking-crisis-svb.html?searchResultPosition=1