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Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance which currently guarantees checking and savings deposits in member banks up to $100,000 per depositor. The vast number of bank failures in the Great Depression spurred the United States Congress into creating an institution which would guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Depositors Insurance Fund (DIF).
Accounts at different banks are insured separately. One person could keep $100,000 in accounts at two separate banks and be insured for a total of $200,000. Also, accounts in different ownerships (such as beneficial ownership, trusts, and joint accounts) can be considered separately for the $100,000 insurance limit. The Federal Deposit Insurance Reform Act of 2005 raised the amount of insurance for an Individual Retirement Account to $250,000.
The two most common methods employed by FDIC in cases of insolvency or illiquidity are the:
- Payoff Method, in which insured deposits are paid by the FDIC, which attempts to recover its payments by liquidating the receivership estate of the failed bank.
- Purchase and Assumption Method, in which all deposits (liabilities) are assumed by an open bank, which also purchases some or all of the failed bank's loans (assets).
THE new FEDERAL DEPOSIT INSURANCE: Small Banks, Small Businesses hoya!
The number of banks closing their businesses so far in 2008 is the highest since 1993: 15. An additional 117 banks are classified by the Federal Deposit Insurance Corporation as a "problem"...
Federal Home Loan Bank Board, Home Owners' Loan Corporation, and Federal Savings and Loan Corporation Annual Reports
"The annual reports and other documents relating to the Federal Home Loan Bank between 1933 and 1952 have been posted....
FDIC DEPOSIT INSURANCE LIMITATIONS
Over the past several weeks, several banks have failed, and their depositors paid out by the FDIC. While the FDIC may pay out more than the insured amount, the actual amount of deposit insurance per account at a given bank is $100,000 (or $250,000 for certain IRA's and other similar deferred accounts)...
Policy Limits Concept Continues for Deposit Insurance ... or Not?
Put another way, should the Federal Deposit Insurance Corporation face liability without limit? Since the FDIC is funded by Taxpayer money, that question really becomes, should Taxpayers face liability without limit to protect everyone's savings deposits? These and similar questions...
FDIC Announces Inclusion of IOLTA in Unlimited Deposit Insurance
Admittedly my most recent post about FDIC insurance limits and IOLTA accounts was overdue. This one is as timely as it gets...
FDIC Chairman Sheila C. Bair Reiterates Promise of Deposit Insurance
FDIC's Depositor's Bill of Rights "You have the right to automatic deposit insurance coverage when you open a deposit account...
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Is a child fathered out of wedlock by an American diplomat to a foreign women on foreign soil entitled to US Citizenship by jus sanguinis?
This is a very tough situation your friend is in. It is difficult to know the ex...
What role does financial means determine which parent gains custody?
was(am) a single male that gained custody of my daughter when she was three. Thi...
How do you recover money from a stop payment placed on a personal check given to you?
you can always take them to small claims court and sure them for 3 times the amo...
My father died and left my mother $200,000 (life insurance) My Mother died 2 years later leaving my sister and I with both about $75,000 each. (including house/vehicles/belongings which I never got). We were supposed to
File a police report. Two police reports, one for you and one for your sister. G...
I was fired on June 3, 2002 in Massachusetts because I reported discriminatory behavior by the employer towards a particular nationality. In July I filed a discrimination/retaliation complaint against the employer with t
It seem sin your case that the fact you filed the complaint prior to being dissa...
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