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Comment by legosexmagic | Hacker News Reader

is there realy no way to get "bank run insurance" from somewhere other than a central bank?

Anyone interested in such a thing would just keep their money in T-bills via a money market fund. Fast access, zero credit risk, but there is the hassle of sweeping/topping up the bank account used for transactions.

I understand many banks offer "insured sweep" accounts that do just this but of course this costs them cheap deposits. Go ask the various VCs why they didn't press SVB to make this service available to their portfolio companies.

What company is big enough to insure a $230 billion payout if just one bank fails, let alone more than one?

I could see the re-insurance market being able to float it but it would probably work under an excess balance fee >$250,000.

But you don’t need to payout $230B, assets didn’t go to 0. You need to payout like $30B, or whatever the difference between assets and liabilities.

Even $30B (as a single claim) would be difficult to handle. Again, name a company you would trust to hand over that much money then and not topple over.

Buy a calendar of deeply out of the money puts on the bank stock. Puts with strike price at 1% of trading stock price should be cheap.

Uber rich don't need to do this, because they lever up until they are too big to fail.

I hear Lloyds of London will insure just about anything. If you have $10m and you want to insure it, they can make you a policy.

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