> There’s an inevitable operational issue when a bank fails and this causes delays in normal process as funds, accounts, data, and workflows need to be shuffled around.
Yup. But if the FDIC is reasonably sure that they'll get many cents on the dollar for depositors, they should free up more than the FDIC insurance limit for large depositors quickly (e.g. Monday). It's in everyone's interest to limit the amount of chaos, and acting relatively quickly and incurring some small amount of risk isn't exactly inviting moral hazard.
Yup. But if the FDIC is reasonably sure that they'll get many cents on the dollar for depositors, they should free up more than the FDIC insurance limit for large depositors quickly (e.g. Monday). It's in everyone's interest to limit the amount of chaos, and acting relatively quickly and incurring some small amount of risk isn't exactly inviting moral hazard.