171 - FDIC - One Minute History

The Federal Deposit Insurance Corporation or FDIC, was created in 1933 to restore confidence after excessive bank failures during the Great depression. The FDIC does not cover investments such as stocks or bonds but it does insure bank deposits up to $250,000 per depositor, with each bank paying a premium to fund the system. The FDIC also has the authority to conduct oversight and monitor Insured banks. During the Savings and Loan crisis of the 1980s, the FDIC resolved failed savings and loan institutions. In 2008, the FDIC facilitated the sale of failed banks such as the Washington Mutual sale to J.P. Margan Chase, and provided assistance to banks like Citigroup and Bank of America. Although many banks have failed since the inception of the FDIC in 1933, no depositor has lost any money from their insured deposits.