Fdic

0 Comments Leave a Comment

1-2 of 2
Categories:
Areas of Interest: Career Management, CEO Leadership, Entrepreneurship, Ethics, Women CEOs

About Fdic

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. The vast number of bank failures in the Great Depression spurred the United States Congress into creating an institution which would guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Depositors Insurance Fund (DIF). The FDIC provides deposit insurance which currently guarantees checking and savings deposits in member banks up to $100,000 per depositor.

Read More


Accounts at different banks are insured separately. One person could keep $100,000 in accounts at two separate banks and be insured for a total of $200,000. Also, accounts in different ownerships (such as beneficial ownership, trusts, and joint accounts) can be considered separately for the $100,000 insurance limit. The Federal Deposit Insurance Reform Act raised the amount of insurance for an Individual Retirement Account to $250,000.

The two most common methods employed by FDIC in cases of insolvency or illiquidity are the:

  • Payoff Method, in which insured deposits are paid by the FDIC, which attempts to recover its payments by liquidating the receivership estate of the failed bank.
  • Purchase and Assumption Method, in which all deposits (liabilities) are assumed by an open bank, which also purchases some or all of the failed bank's loans (assets).



  1. Mentioned In 2 Articles

  2. Ten Management Practices to Axe

    Explore Article BusinessWeek (Feb 5 2010) CEO Leadership

    Ten Management Practices to Axe ...iness Administration 100% Online. Enroll Now! American Express—Savings Save with Confidence with an FDIC Insured Savings Account—Learn More. Morningstar Options Class Let our coaches show you how to inves... (Read Full Article)

    Comment on Article Mentions:   CEO   Finance   Hrms

  3. Lessons from Leno and Conan on Managing Succession

    Explore Article BusinessWeek (Jan 27 2010) CEO Leadership

    ...uctors, and more classroom hours than Kaplan. American Express—Savings Save with Confidence with an FDIC Insured Savings Account—Learn More. Buy a link now! (Read Full Article)

    Comment on Article Mentions:   CEO   Chairman   Fdic

1-2 of 2