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FDIC (Federal Deposit Insurance Corporation)
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States charged with maintaining public confidence in the banking system, mostly by providing insurance for deposits. It comprises a five-member board of directors, all of whom are appointed by the president and confirmed by the senate. No more than three people of the same party can be appointed at any one time. Directors are appointed for 5 years.
Duties
Each of the duties of the FDIC prevents “bank runs” by helping ensure that depositors are always confident that their money is safe. The FDIC has three duties:
- Deposit insurance: The FDIC provides insurance against the loss of funds deposited at a member bank for up to $250,000. In other words, depositors can be assured of ...
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