the FDIC does not directly buy the spread; they allow the CD to exist, which the buyers should have access to
I’m not sure how important FDIC insurance is to the story here, but worth noting that it has a 250k per account limit. So I don’t think financial institutions would have access to an unlimited amount of it.
I’m not sure how important FDIC insurance is to the story here, but worth noting that it has a 250k per account limit. So I don’t think financial institutions would have access to an unlimited amount of it.