The author examines
the federal deposit insurance program and traces deposit insurance
coverage from its original amount of $2,500 in 1934 through each
subsequent increase to the current coverage amount of $100,000. The
article is intended to provide a background for the current debate on
increasing deposit insurance coverage.
The authors identify and analyze the cost of
providing deposit insurance during the savings and loan crisis of the
1980s and early 1990s. They provide a breakdown of the cost into the
FSLIC and RTC segments, and also identify the portions of the cost borne
by the taxpayer and by the thrift industry.
This regular feature of the FDIC Banking
Review contains information on regulatory agency actions, state
legislation and regulation, and articles and studies pertinent to
banking and deposit insurance issues.
The views expressed are those of the authors and do not necessarily reflect official positions of the
Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the FDIC
Banking Review and author(s) are credited. Please provide the FDIC's Division of Research and
Statistics with a copy of any publications containing reprinted material.
Single-copy subscriptions are available to the public free of charge. Requests for subscriptions,
back issues or address changes should be mailed to: FDIC Banking Review, Office of Corporate
Communications, Federal Deposit Insurance Corporation, 550 17th Street, N.W., Washington,