simplebooklet thumbnail

"We do not wish to make the United States government liable for the mistakes and errors of individual banks, and put a premium on unsound banking in the future." 

Franklin D. Roosevelt 

 

 

 

The Federal Deposit

Insurance Corp. 

F.D.I.C.

The purpose of the F.D.I.C. was to keep banks above water by giving them an insurance program for deposits. It also helped many banks stay above water by loaning them money to pay people their money back so it could continue to flow throughout the economy to stop the depression which was currently happening and keep something like it to ever happen again. 

RECOVERY

The F.D.I.C. was established in 1933 by the Banking Act of 1933. This was towards the end or after the Great Depression and it was established to greatly reduce the chances of another depression ever happening again.The F.D.I.C. protected the interests of all banks and the people whose money is put into them. It protected their deposits and made it so if they put their money in there they could get it out whenever they wanted (unlike what happened at the beginning of the Great Depression).

The F.D.I.C. was and still is very important to everyone who deposits money into federal banks in modern day America. Without it, anyone's money could be at high risk of being lost and never recovered. During the Great Depression, some people who put their entire life savings in the banks could never ever get any of it back. For some, this was a great disappointment but to others, it was a reason to end their lives. The F.D.I.C. ultimately could save the lives of many people who trust the banks. 

10 Facts about the F.D.I.C. 

-The F.D.I.C. stands for Federal Deposit Insurance Corporation 

-The F.D.I.C. is very important still to this day. 

-The Establishment in 1933 came at the perfect time

-The help it provided has being helping for decades to push away financial crisis 

-They insure depositers up to $100,000

-The insurance doesnt have to be paid for by the people

-The banking Act of 1933 made it a thing 

-Very important to people who dont want to have their money on them

-Saves the lives of depressed people by insuring them their money 

-This system hasnt failed since it has been around

F.D.I.C. effects on the economy 

 

Has very benifical effects 

Unemployment Rate 

 

Helps keeping banks open 

Government Spending 

 

The government doesnt spend that much on the corporation

Confidence Building 

 

Gives people huge confidence when depositing in banks 

Role of government 

 

The government plays an important role and keeps the corp. Around