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FDIC insures each account up to $250,000. A few billion / 250,000 = way too many bank accounts. So how do the ultra rich insure their fortunes?

marked as duplicate by Hart CO, Community Dec 28 '18 at 23:40

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  • Some good answers on that possible duplicate, the main bit is that they don't have that much money sitting in banks. – Hart CO Dec 28 '18 at 23:10
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    Yes it is usually in assets and in businesses. – Victor Dec 28 '18 at 23:12
  • This is also why credit default swaps exist. Even SIPC only covers assets up to about $500k in value ('about' becasue obviously assets fluctuate in value and you may disagree with the SIPC as to the value of your assets should it ever be relevant). I have $x amount of assets at Institution A, I can buy credit default swaps from other institutions for a value of $x - SIPC/FIDC covered value to simply carry the insurance myself. – quid Dec 28 '18 at 23:48
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    Many "rich" people might not have a lot of actual money, you know. For instance, Bill Gates might have however many billion dollars worth of Microsoft stock, but perhaps keeping the stock (and thus control of the company) is more important to him than having a pile of cash. – jamesqf Dec 29 '18 at 4:36
  • The ultra rich don't hold much cash in banks as the rate of return is very small. – chili555 Dec 29 '18 at 15:10

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