The government wouldn't allow FDIC to fail. If obligations exceeded what was in the fund, then the treasury would just dump more money into it. And yes, that means printing more money if necessary.
Nobody likes it, but what's the alternative. Allow people to lose their deposits in the banks and we'll have a real problem on our hands.
I'm a little surprised FDIC would come out and say something like this. The whole point of having the FDIC is to maintain confidence. Telling the public that it's possible they could fail is counterproductive, if not insane.
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