Federal Deposit Insurance Corporation ( Federal Deposit Insurance Corporation; FDIC ) is a US federal agency created by Congress in 1933 ( Glass-Stigolla Act ) for insuring deposits placed on bank accounts. FDIC covers all banks in the Federal Reserve System and other lending institutions.
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The agency was created as one of the institutions to exit the Great Depression in the United States as part of the overall program to combat the economic crisis - the New Deal of Roosevelt .
Insurance is financed by premiums that are levied from financial institutions and each insured account in the amount of more than 100 thousand US dollars.
There is also a second way in which the FDIC reorganizes the bank. Usually it comes down to the absorption of a bankrupt bank by another bank with full acceptance of all liabilities of the bank absorbed. The advantage of this method is that if in the first method deposits of more than 100 thousand dollars lose about 10%, then in case of absorption, deposit obligations are fulfilled in full.