FDIC


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FDIC

Federal Deposit Insurance Corporation

A corporation owned by the United States government that insures bank deposits up to a certain level, so as to reduce pressure for bank panics. Created by the Glass-Steagal Act of 1933, the FDIC backs all bank deposits and some retirement accounts with the full faith and credit of the United States up to either $100,000 or $250,000, depending on the type of account. This amount may be changed by statute. A bank must purchase bank insurance from the FDIC in order to be eligible for this coverage. The FDIC helps maintain consumer confidence in banks and, by extension, the financial system.

FDIC

Federal Deposit Insurance Corporation (FDIC).

The Federal Deposit Insurance Corportion (FDIC) insures deposits in banks and thrift institutions, assuring bank customers that their savings and checking accounts are safe.

Currently, the coverage limits are $100,000 per depositor per bank for individual, joint, and trust accounts, and $250,000 for self-directed retirement accounts. Business accounts are also insured up to $100,000.

You qualify for more than $100,000 coverage at a single bank, provided your assets are in these different types of accounts.

For example, you are insured for up to a total of $100,000 in all accounts registered in your own name and for another $100,000 representing your share of jointly held accounts. In addition, your individual retirement account (IRA) is insured up to $250,000 if the money is invested in bank products, such as certificates of deposit (CDs).

However, if you purchase mutual funds, annuities, or other investment products through your bank, those assets are not insured by the FDIC even if they carry the bank name.

The FDIC, which is an independent agency of the federal government, also regulates more than 5,000 state chartered banks that are not members of the Federal Reserve System.

FDIC

See Federal Deposit Insurance Corporation.

References in periodicals archive ?
The incidents are now under review, according to Fred Gibson, the acting inspector general at the FDIC. He also testified before the committee that "Key decisions pertaining to the Florida incident were untimely, and a required notification to another federal agency was not made....
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The complaints further sought recovery in the FDIC's own name and right for reimbursement of funds paid out of the FDIC's own insurance fund after Westernbank had been shuttered.
For the first few years of the financial crisis, FDIC settlements with directors and officers of failed banks were often kept confidential, fueling a public perception that the wrongdoers behind the housing crisis and financial sector meltdown were getting off the hook too easily.
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The FDIC uses two measures of risk in order to separate insured financial institutions into different categories of risk labeled I - IV.
Congress responded to concerns that regulatory gaps may have contributed to the severity of the financial crisis that started in 2007 by giving federal financial services regulators, including the FDIC, broader jurisdiction.
In GAO's opinion, FDIC fairly presented, in all material respects, the 2010 and 2009 financial statements for the two funds it administers--DIF and FRF.
The FDIC inherited the delinquent loans after it seized the crippled Cleveland bank in December.
The FDIC said Wednesday it would cut checks to many uninsured depositors of six banks that failed between Jan.
Gallagher of Manchester-by-the-Sea said the FDIC's allegations revolved around compliance issues after East-West was purchased by Worcester-based Commerce Bank & Trust Co.