Federal Deposit Insurance Corporation

(redirected from Federal deposit)
Also found in: Dictionary, Thesaurus, Legal, Financial.
Related to Federal deposit: Federal Deposit Insurance Act

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
..... Click the link for more information.
 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.
..... Click the link for more information.
, 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.
..... Click the link for more information.
 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.
..... Click the link for more information.
 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.
..... Click the link for more information.
 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 ?
Not only will you be entitled to more federal deposit insurance, you will create an efficient plan for transferring bank accounts to beneficiaries after your death.
FDR signed federal deposit insurance legislation after just three months in office, and the limit has been raised repeatedly since.
t-2] = the federal deposit insurance ceiling per account in year t - 2, in thousands of 1982 dollars.
Now that the biggest banking crisis since the Great Depression is over, the question in some people's minds is how to reform the system of federal deposit insurance that grew out of the first major banking debacle of this century and was a contributing cause of the second.
Ackerman's Washington office, said the act will amend both the Federal Deposit Insurance Act and the Federal Credit Union Act.
The general cost/benefit framework developed in public finance provides a useful tool for the analysis of deposit insurance, because it requires a detailed analysis of the somewhat forgotten side of the equation -- the costs associated with the federal deposit insurance system.
Federal Deposit Insurance Corporation has estimated that the failure would cost the agency's deposit insurance fund about USD85m.
The Federal Reserve Board and the Federal Deposit Insurance Corporation announced on February 25, 2005, the execution of a joint written agreement by and among the Federal Reserve Bank of New York and the Federal Deposit Insurance Corporation with David Bodner and Murray Huberfeld.
For example, under the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), auditors are required to make workpapers available, upon request, to regulators for client banks with assets in excess of $500 million.

Full browser ?