We look to the FDIC should our bank fail and feel reasonably confident that we'll be okay. Should we? The FDIC’s Deposit Insurance Fund (DIF) as of September 30, 2016 stood at $80.7 billion, but the DIF-insured deposits amount to $6.8 trillion. That's not a healthy ratio, particularly when you realize that the Fed gave $16 trillion of secret loans to the banking system from 2007 to 2010.
And we have to realize that the banking system is extremely concentrated. Just four banks (JP Morgan, Bank of America, Citibank and Wells Fargo) hold 44.6% of all insured deposits. You may recall that these four banks were loaned trillions of secret dollars in the Great Recession.