22 February, 2020

Quora Answer: How Secure is FDIC Insurance?

The following is my answer to a Quora question: “How secure is FDIC insurance?

The FDIC was created by the 1933 Banking Act, by President Franklin Delano Roosevelt, in the aftermath of the crash that heralded the Great Depression.  It is guaranteed by the US government, and has a US$100 million credit line with the US Treasury that can be expanded as needed.  For the FDIC to fail, the entirety of the US government has to fail.  Should it come to that, losing your deposit would be the least of your worries.



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