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FDIC > Financial Reports > 2008
2008 Annual Report
Creation of the FDIC
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…
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.
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.
The Savings and Loan Industry
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