FDIC
All deposit accounts and all loans have been transferred to JPMorgan Chase Bank.
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass-Steagall Act of 1933.
It provides deposit insurance which guarantees the safety of checking and savings deposits in member banks, currently up to $100,000 per depositor per bank.
A tool to help failed bank depositors determine if your account is fully insured by the FDIC.
For example, a person with accounts at two separate banks can keep $100,000 in each account and be insured for the total of $200,000.
The vast number of bank failures in the Great Depression spurred the United States Congress to create an institution to guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Depositors Insurance Fund.
Although deposit security measures were adopted over time at the state level, the federal government chose a “lender of last resort” approach in the 1913 foundation of the Federal Reserve System.
A March 2008 memorandum to the FDIC Board of Directors shows a 2007 year-end DIF of about $52.4 billion, which represented a reserve ratio of 1.22% of its exposure to insured deposits totaling about $4.29 trillion.
Incoming President Franklin D. Roosevelt, a former banker himself, did not like the insurance approach, but he agreed to it to restore confidence in the banking system.
In the 1990s, SAIF premiums were at one point five times higher than BIF premiums; several banks attempted to qualify for the BIF, with some merging with institutions qualified for the BIF to avoid the higher premiums of the SAIF.
The FDIC Board of Directors met in open session on September 26, 2008; documents and video are available.
The act funded the FDIC with $289 million in initial loans from the United States Treasury and the Federal Reserve, loans which the FDIC repaid in 1948.
The Federal Deposit Insurance Reform Act of 2005 raised the amount of insurance for an Individual Retirement Account to $250,000.
Banking operations of Washington Mutual, Inc were sold in a transaction facilitated by the Office of Thrift Supervision and the FDIC.
Federal deposit insurance received its first large-scale test in the late 1980s and early 1990s during the savings and loan crisis.
The 19th century economy of the United States was characterized by occasional bank panics, with corresponding economic downturns and unemployment.
The amount each institution is assessed is based both on the balance of insured deposits as well as on the degree of risk the institution poses to the insurance fund.
