Published June 1, 2003 | June 2003 issue
Established by Congress in June 1933 in response to the failure of more than 9,000 banks between the stock market crash of October 1929 and March 1933.
An independent agency of the federal government, the FDIC is governed by a five-member board of directors appointed by the president and confirmed by the Senate. The FDIC is subject to audits by the General Accounting Office and oversight by Congress.
The FDIC, like the Federal Reserve System, receives no congressional appropriations to carry out its mission as a deposit insurer and banking regulator. The money for these purposes comes from deposit insurance premiums paid by banks and savings associations and from earnings on investments in U.S. Treasury Securities.
When FDIC insurance began Jan. 1, 1934, coverage was limited to $2,500
per depositor. Over time, Congress increased the coverage limit and
in March 1980 raised it to its current $100,000.
More information on the FDIC.
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