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> and you had 20k deposited in a bad bank; good chance it was simply gone

If the bank was FDIC insured (nearly all US banks are), or a credit union that is a member of the NCUA (nearly all US credit unions are), the customers are insured up to $250k per insured account type.

https://www.fdic.gov/resources/deposit-insurance/faq/

https://www.ncua.gov/files/publications/guides-manuals/NCUAH...



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