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Too Big to Fail Policy
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The theory followed by U.S. bank regulators prior to 1991 that certain depository institutions were too big to fail. The FDIC in effect, insured all depositors of most large banks. In 1991, FDIC changed its policy to protect individual and business depositors only up to the insured maximum of $100,000 for each insured account. See also Conjectural Guarantee.
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