Sure, but the ones with less than $250k will still get their money even if the bank goes down.
The thing is I wonder if there really is a bank "too big to fail". The rich people who have their money in that bank will not go hungry if the money is gone. Most companies will not go bankrupt if the cash they have in the bank is gone. They might have a rough time, but the company could issue new shares or lend from another bank or sell a building they own and rent it back of whatever, but all the clients of a bank will not disappear just because their bank and some of their cash in that bank does disappear.
In my opinion it's worse with all the hoolabaloo when things like this happens and central banks and governments start to talk it's "too big to fail" and they want to rescue banks, lower interest rates, print money etc like in 2008 and the stock market tanks 50%. Just because some loud rich people at banks would lose their money. Most companies in the world would do just fine without JP Morgan and Goldman Sachs.
The thing is I wonder if there really is a bank "too big to fail". The rich people who have their money in that bank will not go hungry if the money is gone. Most companies will not go bankrupt if the cash they have in the bank is gone. They might have a rough time, but the company could issue new shares or lend from another bank or sell a building they own and rent it back of whatever, but all the clients of a bank will not disappear just because their bank and some of their cash in that bank does disappear.
In my opinion it's worse with all the hoolabaloo when things like this happens and central banks and governments start to talk it's "too big to fail" and they want to rescue banks, lower interest rates, print money etc like in 2008 and the stock market tanks 50%. Just because some loud rich people at banks would lose their money. Most companies in the world would do just fine without JP Morgan and Goldman Sachs.