FDIC straps on a pair

"As banks get more desperate for funding—often because they are at risk of failing—they tend to offer higher interest rates. See, for instance, GMAC offering 3.0% on CDs. Like WaMu before it, GMAC can still attract deposits by offering above market interest rates despite its high risk of failure. Depositors couldn’t care less if the bank is at risk of failing, since it has FDIC insurance, they are protected. Might as well take advantage of those high interest rates while you can, right? "