Schwab has an easy-to-understand link on asset protections with the SIPC, additional insurance and the FDIC. Details are similar at other major brokerages, e.g. the Fidelity links.
There are lots of concerns about asset protections after 3 recent bank failures - Silvergate Bank, SVB Bank (#2 biggest failure in the US history), Signature Bank (#3 biggest failure in the US history). Treasury Secretary Janet YELLEN further muddied the current rescue situation by saying that in future, excess deposits may be protected at systemically-important-banks (SIBs) upon presidential determination, but not at smaller community banks. Ironically, deposits at the 2 failed banks under government operations now seem to have have unlimited deposit insurance.
It is ironic that the "world's second most secure Bank... ie SVB ( first is the Fed) just filed for bankruptcy
SVB Bank was taken over by the Feds/FDIC. The government-run SVB Bank is now among the safest and with the best/unlimited deposit protections.
You are correct. I also read that technically an FDIC insured bank cannot go bankrupt.
11 U.S. Code § 109
SVB Financial bankruptcy filing
Let's watch our redundant letters here (Silicon Valley Bank and SVB Bank).
Silicon Valley Bank (SVB) was taken over by the FDIC. In turn, the FDIC created Silicon Valley Bridge Bank (SVB Bank, or SVBB) to hold all the assets (including all the deposits) of SV Bank. As far as depositors are concerned, there is no longer any SV Bank.
I was worried about the limits of SIPC & FDIC plus what to do under these scenarios.
Fwiw... I've been following Jennifer's (RiA) Diamond NestEgg YouTube FREE ChnL
...SIPC is covered after 13 min on video & can be fast-forwarded or dragged with a mouse.
Hope it helps here on many other investing subjects she also covers.