Federal Deposit Insurance Corporation


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Federal Deposit Insurance Corporation

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 Depression 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 System, and in other qualified state banks. (Mutual funds and other securities 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 associations 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.
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References in periodicals archive ?
Partly in a bid to address these issues, regulators from all five federal agencies that oversee the nation's financial institutions--the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of Thrift Supervision, the OCC and the National Credit Union Association--met with representatives of the AICPA in September 2000.
The IRS also noted that the bank must be incorporated for purposes of obtaining Federal Deposit Insurance Corporation (FDIC) deposit insurance and that the bank's acting general counsel represented to the FDIC that the bank "should be considered to be incorporated under Texas law."
The Federal Deposit Insurance Corporation (FDIC), in proposed regulations to implement the FDIC Improvement Act of 1991, which requires banks to report on internal controls, stated that an example of acceptable internal control standards can be found in the COSO report.
Dutch lender Rabobank's US unit said Saturday it has acquired regional banks Butte Community Bank and Pacific State Bank from the Federal Deposit Insurance Corporation (FDIC).
In protecting the depositors, Federal Deposit Insurance Corporation (FDIC) has entered into a purchase and assumption agreement with Crown Bank, Brick, New Jersey, to assume all of the deposits of First BankAmericano.
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 agencies), and the Conference of State Bank Supervisors asked insured depository institutions on September 1, 2005, to consider all reasonable and prudent steps to assist customers' and credit union members' cash and financial needs in areas affected by Hurricane Katrina.
Prior to joining Union State Bank, Allan served as senior audit associate with Federal Deposit Insurance Corporation.
The Federal Financial Institutions Examinations Council (FFIEC), which comprises the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the National Credit Union Administration, published an interagency statement that outlines a due-diligence process for each "mission-critical" service and product vendors supply.
The Idaho First National Bank decision involved the ability of a bank holding company to benefit from a loss recognized on the sale of certain assets of a troubled bank subsidiary that had been acquired in a transaction assisted by the Federal Deposit Insurance Corporation. The Tax Court rejected the IRS's position and allowed the acquiring group to use the losses, on the grounds that the regulations specifically allow for the rehabilitation of a corporation notwithstanding that the expenses had economically accrued before the acquisition.
The original GAO letter, while addressed to May, was part of a filing made to the Federal Deposit Insurance Corporation (FDIC) regarding the regulations for the new FDIC Improvement Act.
US Ameris Bank, part of Ameris Bancorp (NASDAQ:ABCB), signed a definitive agreement with the Federal Deposit Insurance Corporation (FDIC) to take over Georgia-based single-office bank Satilla Community Bank, Ameris said Friday.
Georgia regulators have closed Community Bank of West Georgia and named Federal Deposit Insurance Corporation as the receiver.

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