Federal Deposit Insurance Corporation

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Federal Deposit Insurance Corporation (FDIC)

A federal institution that insures bank deposits.

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.

Federal Deposit Insurance Corporation (FDIC)

The federal agency that insures deposits at commercial banks to a limit of $100,000 per depositor or combination of depositors at each insured bank. This insurance also applies to certificates of deposit sold through retail brokerage houses. The insurance fund is financed by a small fee paid by the banks based on the amount of their insured deposits.

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.

Federal Deposit Insurance Corporation (FDIC)

An independent agency (www.fdic.gov) created by Congress in 1933. It supervises banks, insures deposits up to $100,000 per depositor per institution,and acts as a receiver and liquidator for failed banks.

References in periodicals archive ?
This result suggests that federal deposit insurance did not contribute to the S&L crisis.
Mispriced federal deposit insurance contributed to a series of asset deflations that caused bank insolvency losses not seen since the Great Depression," says Petri.
The American public has been called upon to supplement funds available to one federal deposit insurance agency (the old FSLIC) and to lend funds to the other (the FDIC).
Partly in a bid to address these issues, regulators from all five federal agencies that oversee the nation's financial institutions--the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Office of Thrift Supervision, the OCC and the National Credit Union Association--met with representatives of the AICPA in September 2000.
Specifically," said Carnell, "it sought to align those incentives more closely with the interests of the federal deposit insurance funds and the taxpayers.
The report on the yearlong survey on the sale of investments by banks said that 28 percent of the customers were not told that mutual funds are not protected by federal deposit insurance.
The Shared National Credit (SNC) Program was established in 1977 by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
In 1991, the Federal Deposit Insurance Corporation Improvement Act amended the 1988 statement for larger institutions by (1) requiring all insured banks with $500 million or more in total assets at the beginning of their fiscal year to have annual audits by outside auditors and audit committees consisting entirely of outside directors and (2) encouraging banks falling below the $500 million threshold to establish audit committees with solely outside directors.
A notice of prohibition is issued under a provision of the Federal Deposit Insurance Act that authorizes the Federal Reserve and other bank regulators to limit the activities of bank officials who have been charged with criminal offenses pending the resolution of the charges.
Rubin said supporters of the act today say Glass-Steagall is necessary to protect the federal deposit insurance system.
The proposed rule was issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.
The boards of directors of the Resolution Trust Corporation (RTC), the agency created to oversee the bailout of failed savings and loans, and the Federal Deposit Insurance Corporation (FDIC) adopted a statement on their contract policies with CPA firms facing litigation brought by the FDIC.

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