With some 100+ banks (if not more) that probably will fail in the next two years, that averages out to be about 1 bank per week. Since FDIC is under-staffed in the first place, and you don’t want things to go too crazy, FDIC should probably be closing at least 1 bank per week, just to make everything and all the processes more smoothly.
The last Friday was First Priority Bank. The week before was First Heritage Bank in California, and First National Bank of Nevada in Nevada. Since it should be always Friday, you don’t need to worry on any other days.
IndyMac’s closure was certainly triggerred by a run on bank. The reason that FDIC wants people to emphasize that your money is “safe” as long as it’s under $100K per depositor is that such run on bank could be fatal for the financial system, since your money really doesn’t exist. For every dollar in your checking account, ten dollars can be lent out, not to mention that the reserve requirement for saving account is zero.
Closing the weak banks simply allows the game of financial systems to continue. I will certainly not wait in line to get my money back when my account balance is less than $100K. All the money “will be there”, and of course, I also know fully well that it’s also not there, since it’s lent out to crazy home buyers from 2004 to 2007.