Comments on: FDIC

By: Regulation Philosophies Differ For Banking & Financial Markets | Babeled

Mon, 15 Jun 2009 22:39:16 +0000

[...] same set of facts led to the formation of the Federal Deposit Insurance Company (FDIC), also a part of the Banking Act. Banks are required to pay insurance premiums to FDIC so [...]

By: Emergency Economic Stabilization Act of 2008 Discussion & Analysis | Babeled

Tue, 18 Nov 2008 02:56:52 +0000

[...] The EESA lays out two primary options for financial institutions under what is known as the Troubled Asset Relief Program (TARP), a part of the EESA. TARP provides financial institutions with the ability to sell “troubled assets”, to be defined within 2 days of the EESA’s anticipated passage, by the U.S. Secretary of Treasury, at a value that cannot exceed the original face value of the asset. The other option is insurance for those things classified as “troubled assets”. In this case, the U.S. Treasury will sell insurance to financial institutions to guarantee the values and interest pay-outs on the asset by requiring the financial institution to pay an insurance premium to the government (similar to FDIC insurance). [...]

By: U.S. Economy in Crisis Explained Part 1 of 3: How it Began | Babeled

U.S. Economy in Crisis Explained Part 1 of 3: How it Began | Babeled — Sat, 27 Sep 2008 19:00:20 +0000

[...] part in this history is the formation of the Federal Deposit Insurance Company (FDIC), also a product of the Banking Act of 1933 meant to bring an end to the Great Depression. Since [...]

By: Jennifer Hutchinson

Jennifer Hutchinson — Tue, 10 Jun 2008 16:15:30 +0000

When the FDIC says that they will insure up to $100,000 they mean per account per bank. Also, last year many banks increased their limit to $200,000. So say I personally have $800,000 but it is spread over 8 different accounts each with less then $200,000/$100,000 (depending on the bank) then I will be covered fully.

By: Jonathan Carr

Jonathan Carr — Thu, 15 May 2008 00:53:15 +0000

Umm…right…

Anyway, I remember watching Bear Sterns employees walk out of their building with their desks packed up. Unhappy employees for sure. I also remember a few employees saying the whole thing could have been prevented had something been done a few days prior to the bail out.

Also, Jay… Most banks that I see offer a “$100,000 FDIC insured” gaurantee. Can you explain what exactly this means? If someone has more than $100,000 in a single bank and the bank were to go under…does that mean the U.S. Federal Government will only reimburse that amount? Most banks have valued customers with well over $100,000 in their accounts. Do these valued customers only get the same FDIC insurance that someone with a few hundred dollars in their account gets? Jay, you are the man with this stuff, how does it work?

By: Greg Molyneux

Greg Molyneux — Wed, 14 May 2008 23:54:50 +0000

Awe, somebody call the Wambulance.

By: Gregory Rineberg

Gregory Rineberg — Wed, 14 May 2008 23:54:38 +0000

I did not realize the negative effects that the FDIC could wreak, so this was eye opening for me at least.

By: Gregory Rineberg

Gregory Rineberg — Wed, 14 May 2008 23:51:18 +0000

As was my intention, why must you be a jerk?

By: Greg Molyneux

Greg Molyneux — Wed, 14 May 2008 23:40:44 +0000

Rineberg, yet again you simply restated what the author has already said. Well done.

By: Gregory Rineberg

Gregory Rineberg — Wed, 14 May 2008 23:38:51 +0000

I never thought of the FDIC as being counterproductive to what it is intended to do, but it seems it has. It is almost worth letting the depositors lose their money when their is a bankruptcy then disturbing the entire stock market.