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What Is The Essential Role Of The FDIC (Federal Deposit Insurance Corp) With Regards To Our National Interest?

Question by B.A.R | Posted in Government

Or to Federalism?

please explain

Answer: Back prior to, and during the great depression, commercial banks, where people have savings and checking accounts, began merging with investment banks. The investment banks were using depositors money for high risk investments.

As the money was being lost, banks would close and depositors lost their money. Other depositors panicked and started withdrawing money they had deposited in their banks. That created "bank runs" Since most of the money was out in small business loans and mortgages, the banks did not have the cash on hand, and even more banks went under when their depositors demanded their money back

In order to restore the banking industry which
 
 

Why Does The Federal Deposit Insurance Corp.(FDIC) Shut Banks Down For?

Question by Joel P | Posted in Corporations

Almost every week I would read articles about the FDIC shutting banks down. Why shut a bank down just to sell it to another bank for?

Answer: They shut down banks because they are insolvent. The FDIC basically discharges debts to bondholders and then puts funds into the bank to keep it running. Then it goes looking for a buyer and generally there are negotiations as to how much money the FDIC will put into the bank to get someone that is willing to take it over.

Sometimes they find a buyer immediately and other times it may take several years to find a buyer especially for a large bank.

If the let the original owners keep running the bank, they will continue running the bank until there isn't any more money remaining in the bank. Then the FDIC will be responsible for 100% of the amount on deposit at the b

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FDIC?? (federal Deposit Insurance Corp.)?

Question by fleur | Posted in Personal Finance

what does the FDIC do exactly? and if i were to make an advertisement around the time of the New Deal what would it include and say?

Answer: They insure bank accounts. Make your advertisement something about safety and security. The FDIC still advertises today check out what they still do, and look at some insurance company ads for ideas.

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Why Would Dems Want To Put A "consumer Protection Agency" Inside The Federal Reserve Before A FULL Audit?

Question by _______ | Posted in Politics

Last week there was an amendment to this "financial reform" that would have required a FULL audit of the Federal Reserve. (The White House, the Federal Reserve, and Wall Street were all opposed............)

So, Bernie Sanders gutted this amendment to only include an audit of the emergency lending program. (Ironically, TWO federal judges ALREADY ruled the Federal Reserve had to give up this information due to a Freedom of Information request by Bloomberg)

So why would you put a "CONSUMER protection agency" inside of an institution you aren't willing to FULLY audit??

http://news.yahoo.com/s/ap/20100506/ap_o n_bi_ge/us_financial_overhaul_37

Answer: Because it is time to reign the rascals in. Attempts to subordinate the US government to the private sector have been thwarted, praise God.

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Washington Mutual Went Under Today, Biggest Bank Failure In US History. Was This What Bush Was Warning About?

Question by Gone Rogue | Posted in Elections

Washington Mutual, the largest U.S. savings and loan, has been one of the lenders hardest hit by the nation's housing bust and credit crisis, and had already suffered from soaring mortgage losses.

Washington Mutual was shut by the federal Office of Thrift Supervision, and the Federal Deposit Insurance Corp was named receiver.

Answer: Yes. Things are getting scary. FDIC has only so much in the way of assets to insure bank customers.

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FDIC

The Federal Deposit Insurance Corporation or FDIC is a US government corporation that insures deposits of member banks up to $250000 for each ...

FDIC Bank Closings | The Big Picture

by Barry Ritholtz

TBTF (known as Tier 1 FHC in FinReg) is mandated to be defined, the legislation specify factors that the Federal Reserve must consider when determining whether an individual financial firm poses a threat to financial stability. FinReg is suppose to end TBTF for all banks — time will tell if a Tier 1 Bank is put into a resolution phase. FDIC is also entering into loss share agreements with the acquiring banks — would be good to see what these agreements look like per institution and aggregate contingent liability. By definition if a bank is failing, driven to resolution and wind down by FDIC then they are not TBTF....

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