If there are major failures of several large banks or many small banks, and the Federal Deposit Insurance Corporation (FDIC) insurance fund is insufficient to cover all of the depositors' losses, then the U.S. government will pay the depositors the money owed by the FDIC.

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This is known as "too big to fail" and the government has historically stepped in to prevent widespread financial collapse. The government may also take other actions to stabilize the banking system in such a situation.

If There Are Major Failures of Several Large Banks or Many