Federal Deposit Insurance Corporation


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Federal Deposit Insurance Corporation

(FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $250,000. The corporation was established in 1933 to prevent a repetition of the losses incurred during the Great DepressionGreat Depression,
in U.S. history, the severe economic crisis generally considered to have been precipitated by the U.S. stock-market crash of 1929. Although it shared the basic characteristics of other such crises (see depression), the Great Depression was unprecedented in its
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 when bankrupt banks could not return the money deposited in them. It is managed by a five-member board of directors, appointed by the president with the consent of the U.S. Senate. The FDIC provides coverage for deposits in national banks, in state banks that are members of the Federal Reserve SystemFederal Reserve System,
central banking system of the United States. Established in 1913, it began to operate in Nov., 1914. Its setup, although somewhat altered since its establishment, particularly by the Banking Act of 1935, has remained substantially the same.
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, and in other qualified state banks. (Mutual fundsmutual fund,
in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e.
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 and other securitiessecurities,
in finance, instruments giving to their legal holders rights to money or other property. Securities include stocks, bonds, notes, mortgages, bills of lading, and bills of exchange. See speculation and stock exchange.
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 are not covered.) It may also make loans to insured banks in the interest of protecting the depositors. The corporation derives its income from assessments on insured banks and interest on government securities. Since 1989 the FDIC has supervised the Savings Association Insurance Fund, the agency that was created to provide coverage for savings and loan associationssavings and loan association
(S&L), type of financial institution that was originally created to accept savings from private investors and to provide home mortgage services for the public.

The first U.S. S&L was founded in 1831.
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 when the Federal Savings and Loan Insurance Corporation became insolvent. A sharp increase in bank failures in the late 1980s and early 1990s led to the insolvency (1991–92) of the FDIC as well, forcing it to seek government loans. The fund recovered by the mid-1990s, but the mortgage and financial crisis that began in 2007 again threatened the fund and led to significant FDIC takeovers of banks.
References in periodicals archive ?
The proposal was issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.
The shares of common stock offered in the conversion are not savings accounts or deposits and are not insured by the Federal Deposit Insurance Corporation, the Bank Insurance Fund or any other government agency.
In 1991, the Federal Deposit Insurance Corporation Improvement Act amended the 1988 statement for larger institutions by (1) requiring all insured banks with $500 million or more in total assets at the beginning of their fiscal year to have annual audits by outside auditors and audit committees consisting entirely of outside directors and (2) encouraging banks falling below the $500 million threshold to establish audit committees with solely outside directors.
The second, the Order to Terminate United States Banking Activities Issued upon Consent, was issued on November 1, 1995, and amended on February 2, 1996, by the Board, the Federal Deposit Insurance Corporation, the New York State Banking Department, and bank supervisory agencies in California, Florida, Georgia, Illinois, and Massachusetts.
Permitting a depository institution insured by the Federal Deposit Insurance Corporation to affiliate with a securities firm, insurance company or other financial company.
and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
The proposed rules are being issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.
Private deposit insurance applying to deposits exceeding the Federal Deposit Insurance Corporation (FDIC) $100,000 limit is now available in most states.
Stuzin, chairman and president of Citizens Federal Bank, has been appointed to the Savings Association Insurance Fund Advisory Committee to the Federal Deposit Insurance Corporation.
On Monday, September 30, the state of Georgia closed the bank and appointed the Federal Deposit Insurance Corporation as receiver after the state determined that the bank was unable to meet the provisions of its voluntary liquidation plan.
The transaction is subject to the approval of the Office of Thrift Supervision, Federal Deposit Insurance Corporation and the South Carolina State Board of Financial Institutions.

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