10 Facts about FDIC

If you want to know the provider of deposit insurance in United States, check Facts about FDIC. This government corporation of United States was established during the Great Depression according to the Banking Act in 1933. FDIC stands for Federal Deposit Insurance Corporation. The primary objective at that time was to restore the trust of the people related to the banking system in United States. Before FDIC was established, almost one-third of banks failed.  Let us find out other interesting facts about FDIC below:

Facts about FDIC 1: insurance limit

FDIC gave US$2,500 per ownership category for the initial insurance limit. Now each ownership category receives $250,000 according Dodd–Frank Wall Street Reform and Consumer Protection Act in 2011.

Facts about FDIC

Facts about FDIC

Facts about FDIC 2: the funds

The public funds are not used to cover the finance of FDIC and its reserves. The main source of funding is from the insurance dues of member banks of FDIC.

Facts about FDIC 3: the line credit

The line of credit of FDIC to the Treasury Department of United States reaches US$100 billion.

Check Also: 10 Facts about FDA

FDIC Facts

FDIC Facts

Facts about FDIC 4: deposit insurance

6,638 institutions get the deposit insurance from FDIC as of 27 August 2014.

Facts about FDIC 5: other jobs of FDIC

Besides dealing with insurance deposit, FDIC also has the jobs to supervise and examine soundness and safety of some financial institutions. The receiverships and failed banks are managed by this institution.

Facts about FDIC 6: governance

The governing body of FDIC is the Board of Directors. It consists of five members. The US president appointed three of them. They will serve for six years. It also has two ex officio members. Both are director of CFPB and Comptroller of the Currency.

Facts about FDIC 7: the members of Board of Directors

Chairman of the Board is at the hand of Martin J. Gruenberg as of 1st January 2016. The vice president and Director of CFPB are Thomas M. Hoenig and Richard Cordray respectively. The Comptroller of the Currency is Thomas J. Curry.

FDIC Pic

FDIC Pic

Facts about FDIC 8: the talk about deposit insurance

The talk about the deposit insurance took place during the Panics of 1893 and 1907 where many banks filed bankruptcy.

Read Also: 10 Facts about FCCLA

Facts about FDIC 9: national deposit insurance

The national deposit insurance was proposed before the Congress as a bill by William Jennings Bryan in 1893. However, the Congress paid no attention to it.

Facts about FDIC

Facts about FDIC

Facts about FDIC 10: the bank failure

The number of bank failure was reduced into zero after FDIC was established.

Are you impressed after reading facts about FDIC?