Remember that scene at the beginning of It’s a Wonderful Life, where people are all desperately trying to get into the bank because if it fails before they get in, they lose their money? That’s what the FDIC prevents.
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Yeah. FDIC insurance is the only reason each of us will be left with up to
100k250k per bank account, if our banks go under. And most of us have less than 100k in savings, so it’s basically the US government sayingI can’t even be bothered to hear how his minions are going to defend this one. It’s indefensible.
They won’t defend it. They have torn out their ear drums to criticism. They will hear no evil about the man.
It’s 100k per account per bank, IIRC
It was. Got raised to 250k a few years back
It’s also more if it’s a joint account.
You did not remember correctly. This is disclosed on every savings account with a bank that is insured by the FDIC. The limit was raised several years ago.
Sounds like I remembered correctly, although my information was outdated
Which makes the information incorrect.
Yes, the information I remembered was correct and outdated for the memory. However, that doesn’t change the fact that it’s incorrect right now. It doesn’t mean I recalled incorrectly
What backs or gurantees the FDIC?
That’s a little hard to parse, but if you’re asking “What guarantees the FDIC has the money to pay back Americans who lose their savings because of a bank collapse?”: The FDIC does. From https://www.fdic.gov/about/what-we-do:
FDIC insurance is a selling point for many retail banking products (like checking and savings accounts), so those institutions pay for the insurance so people will have confidence to bank there. More importantly, they buy it because it’s required by law currently.
If the FDIC were abolished, the void would be filled by unregulated entities that would charge higher premiums and cover less, and there would probably be kickbacks involved - while the government watches with its popcorn - to disincentivise real free market competition.
That’s if there were any kind of deposit insurance at all, I mean. The idea might be to encourage the American people to put their savings into a form they can retain control over - like precious metals, land, or digital currencies.
There’s also an implicit guarantee that the federal government would step in an make deposits good if there were a bank failure large enough to wipe out the FDIC
Why would they need to defend it? They already won.