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 ?
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200).
Sasone believes that her work at the FDIC has been rewarding to her in terms of benefits and the public service she provides.
The termination of the FDIC loss share agreements has no effect on the yields of the loans and Columbia State Bank will be solely responsible for all future charge-offs, recoveries, gains, losses and expenses related to the previously covered assets because the FDIC will no longer share in those amounts.
"The committee remains concerned about the FDIC's weak cybersecurity posture and its ability to prevent further breaches," according to the report issued by the U.S.
"An effective FDIC information security and privacy program is critical to our mission of maintaining stability and public confidence in the nation's financial system," FDIC Chairman Martin J.
which is brought by, on behalf of or in the right of, an [insured] organization or any insured person." Chartis reasoned that, because there would be no coverage under the policy for a claim by Westernbank itself against the directors and officers, there should be no coverage when the FDIC asserts Westernbank's rights as the basis for its action against the same directors and officers.
Banks need to cope with changing FDIC strategies as well.
According to the Cornerstone study, 417 former directors and officers have been named as defendants in FDIC suits since the financial crisis began.
1, 2007, the FDIC has named approximately 205 individual appraisers and appraisal firms as defendants in lawsuits alleging professional negligence.
The number of bank failures has skyrocketed in recent years, putting extreme pressure on the FDIC's Deposit Insurance Fund (DIF).
The matter arose in relation to the FDIC's actions as receiver for Washington Mutual Bank (WaMu).
THE FDIC has completed work on regulations that could affect the steps it would take if it became the receiver of an insurance company or of an affiliate of an insurance company.