With WM out of play chances for FDIC default become very low. Small banks alone cannot bankrupt FDIC, by the way most of 'bank defaults' this year went by WM scenario, i.e. accounts are quickly taken by another bank, so FDIC doesn't dispense any money.

>And the title of the thread is.... :o)
>
>
>>Looks like you are correct on this, it wasn't clear last night. However, the FDIC still does not have enough cash to save all the failing banks without getting bailed out themselves.
>>
>>Bob
>>
>>>JPMorgan picks all WM accounts so FDIC will not get involved; no drain at all.
>>>
>>>>WaMu failed last night, they are selling off the deposits and branches, but another giant drain on the FDIC, which will surely buckle under the weight of the coming bank defaults unless they pull off the big bailout.
>>>>
>>>>Bob
>>>>
>>>>>http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=amZxIbcjZISU