"Don't withdraw your money or you stand to lose all of the non-FDIC insured money you don't withdraw" is an absurd stance. If tomorrow I realized that, if I were too late to the withdraw party my account would turn into a $250k IOU from the FDIC, I'd absolutely move my money to another account.
The bank was belly up - placing the blame on the people who expected their bank accounts to be liquid doesn't seem like the correct take. When you put your money in a bank, you expect to be able to pull that money out at any time for any reason. One of those reasons is suspecting the bank is incapable of surviving you withdrawing your money.
The bank was belly up - placing the blame on the people who expected their bank accounts to be liquid doesn't seem like the correct take. When you put your money in a bank, you expect to be able to pull that money out at any time for any reason. One of those reasons is suspecting the bank is incapable of surviving you withdrawing your money.