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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank



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2008 Annual Report



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Creation of the FDIC

The first official emblem of the FDIC, and a new symbol of confidence for depositors.
The first official emblem of the FDIC, and a new symbol of confidence for depositors.

The Banking Act of 1933 created the FDIC as a temporary agency. Despite Roosevelt’s reservations about deposit insurance, popular support for it was so strong that he signed the Act into law. In January 1934, the FDIC began insuring deposits, covering them up to $2,500. The FDIC also became the federal regulator of state non-member banks*, the receiver for failed national banks, and—with state authorization—the receiver for failed state banks.

*State-chartered banks that were not members of the Federal Reserve System.

You have accomplished in these few months with complete success a gigantic task which the pessimists said could not possibly be done before Jan. 1. That 97 per cent of the bank depositors of the nation are insured will give renewed faith…
—FDR in a letter to FDIC Chairman Cummings, dated January 1, 1934

7,785 – Number of state banks examined under FDIC auspices during the last three months of 1933 to ensure that they could apply for deposit insurance.

In the Beginning

On June 16, 1933, President Roosevelt signed the act that created the FDIC. He was surrounded by congressional leaders, including Senator Carter Glass and Representative Henry Steagall, both of whom lent their names to the law.

On June 16, 1933, President Roosevelt signed the act that created the FDIC. He was surrounded by congressional leaders, including Senator Carter Glass and Representative Henry Steagall, both of whom lent their names to the law.

Prosperity and Growth

During the period c.1945-1970, the banking industry was highly regulated, with tight restrictions on interest rates and on products and services. Few banks failed, so the FDIC faced few challenges as a deposit insurer. In fact, by 1950 the insurance fund had become large enough ($1.2 billion) for the FDIC to begin giving rebates to banks on their deposit insurance assessments.

2,508 – Number of FDIC employees at year-end 1970.

2,508 – Number of FDIC employees at year-end 1970.

Handing_over_check
Repaying the Treasury
In September 1947, FDIC Chairman Maple Harl (right) presented a check for $139 million to a representative of the Treasury Department, repaying almost half of the government’s initial funding of the FDIC. The balance was paid the following year.

The Savings and Loan Industry
Savings and loan associations (S&Ls), or thrifts, were depository institutions that made home mortgage loans at relatively low fixed rates. Starting in 1934, they were insured by the Federal Savings and Loan Insurance Corporation (FSLIC). The S&L industry grew rapidly during this period and very few institutions failed.

treasure check

Increased Protection Congress increased FDIC insurance coverage levels six times between 1934 and 1980.

Increased Protection
Congress increased FDIC insurance coverage levels six times between 1934 and 1980.

 

 


Last Updated 06/18/2009 communications@fdic.gov

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