The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
What’s the significance?
An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The FDIC helps to prevent bank runs by assuring depositors that they have access to their money. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure.
Who’s talking about it?
Bloomberg Businessweek discusses an evaluation of the FDIC… Huffington Post reports on the FDIC’s concern/involvement for economic climate(s) overseas… the Wall Street Journal highlights Chairman Bair on capital rule.