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Federal Deposit Insurance Corporation, The (FDIC)


Self Description

November 2008: "The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress that maintains the stability and public confidence in the nation’s financial system by insuring deposits, examining and supervising financial institutions, and managing receiverships.

Vision

The FDIC is a leader in developing and implementing sound public policies, identifying and addressing new and existing risks in the nation’s financial system, and effectively and efficiently carrying out its insurance, supervisory, and receivership management responsibilities."

http://www.fdic.gov/about/mission/index.html

February 2003: "...the FDIC was created in 1933 to insure deposits and promote safe and sound banking practices."

http://www.fdic.gov/about/index.html

Third-Party Descriptions

June 2013: "This population — people who tend to use few, if any, bank services — is swelling. About 10 million households in the United States do not use a bank at all, up from nine million four years ago, according to estimates from the Federal Deposit Insurance Corporation. And 24 million households that do have a bank account still use expensive financial services like prepaid cards, the agency said."

http://www.nytimes.com/2013/07/01/business/as-pay-cards-replace-paychecks-bank-fees-hurt-workers.html

January 2013: 'What's most amazing about this isn't that Citi got so much money, but that government-endorsed, fraudulent health ratings magically became part of its bailout. The chief financial regulators – the Fed, the FDIC and the Office of the Comptroller of the Currency – use a ratings system called CAMELS to measure the fitness of institutions. CAMELS stands for Capital, Assets, Management, Earnings, Liquidity and Sensitivity to risk, and it rates firms from one to five, with one being the best and five the crappiest. In the heat of the crisis, just as Citi was receiving the second of what would turn out to be three massive federal bailouts, the bank inexplicably enjoyed a three rating – the financial equivalent of a passing grade. In her book, Bull by the Horns, then-FDIC chief Sheila Bair recounts expressing astonishment to OCC head John Dugan as to why "Citi rated as a CAMELS 3 when it was on the brink of failure." Dugan essentially answered that "since the government planned on bailing Citi out, the OCC did not plan to change its supervisory rating." Similarly, the FDIC ended up granting a "systemic risk exception" to Citi, allowing it access to FDIC-bailout help even though the agency knew the bank was on the verge of collapse.'

http://www.rollingstone.com/politics/news/secret-and-lies-of-the-bailout-20130104

November 2012: "BUT in a letter to the F.D.I.C. a few months after Dodd-Frank became law, the CME Group asked the F.D.I.C. to confirm that the exchange wouldn’t fall under that authority’s jurisdiction. It is not a financial company as defined by the law, the CME contended, and therefore should not be subject to the resolution process."

http://www.nytimes.com/2012/11/04/business/one-safety-net-that-needs-to-shrink.html

June 2012: "BANKING PRECAUTIONS Business owners who have been hacked often feel most betrayed by the banks they thought were protecting their money. But banks have no legal obligation to reimburse businesses for attacks — federal regulations do not cover commercial accounts. Regulatory bodies such as the Federal Deposit Insurance Corporation and the Federal Financial Institutions Examinations Council offer guidance on fraud controls for financial institutions, and owners should make sure their banks are up to speed."

http://www.nytimes.com/2012/06/14/business/smallbusiness/protecting-business-accounts-from-hackers.html

June 2009: "The administration’s plan, unveiled on Wednesday, would give the Federal Reserve greater supervisory authority over large financial institutions whose problems pose potential risks to the economic system. It would also expand the reach of the Federal Deposit Insurance Corporation to seize and break up troubled institutions. And it would create a council of regulators, led by the Treasury secretary, to fill in regulatory gaps."

http://www.nytimes.com/2009/06/21/us/politics/21radio.html

May 2009: 'Banks may still be a safe place to stash your cash, with the FDIC now insuring up to $250,000 per depositor. But after years of lending money to just about anyone with a pulse, the industry is paying a steep price. Losses on bad loans issued during the credit bubble could top $1.4 trillion, according to the International Monetary Fund.'

http://www.smartmoney.com/spending/rip-offs/10-things-your-bank-wont-tell-you-23457/

September 2008: "Uncle Sam practices prevention The Federal Deposit Insurance Corp. was created in 1933 by President Franklin D. Roosevelt to insure bank and thrift deposits after people lost their money in the aftermath of the stock market crash of 1929. Deposits at credit unions are insured by the National Credit Union Administration. The agencies insure accounts up to $100,000."

http://www.bankrate.com/brm/news/sav/19991116_a1.asp

March 2008: "Many brokerage-firm clients also have their uninvested cash automatically swept to a bank-deposit account or other cash alternative. If cash is swept to a bank savings accounts, the funds have up to $100,000 in coverage from the Federal Deposit Insurance Corp. Cash that is swept into a money-market mutual fund is covered by the SIPC."

http://online.wsj.com/article/SB120580155855243823.html

February 2007: According to the Federal Deposit Insurance Corp., which recently issued tips to avoid being conned by this scheme, a depositor is most likely to be held responsible for all the money if a deposited check, cashier's check or money order comes back later as fake or counterfeit.

http://www.washingtonpost.com/wp-dyn/content/article/2007/02/17/AR2007021700136.html

Relationships

RoleNameTypeLast Updated
Owned by (partial or full, past or present) US Federal Government - Independent Agencies Organization Nov 27, 2008
Cooperation (past or present) Washington Mutual, Inc. (WaMu) Organization Nov 26, 2008
Organization Head/Leader (past or present) Sheila C. Bair Esq. Person Apr 27, 2010
Organization Executive (past or present) Richard Brown Person Sep 30, 2006
Organization Head/Leader (past or present) Donald E. Powell Person Feb 17, 2007
Organization Executive (past or present) John M. Reich Person Nov 26, 2008

Articles and Resources

36 Articles and Resources. Go to:  [Next 16]

Date Fairness.com Resource Read it at:
Jun 30, 2013 Paid via Card, Workers Feel Sting of Fees

QUOTE: in the overwhelming majority of cases, using the card involves a fee. And those fees can quickly add up....For banks that are looking to recoup billions of dollars in lost income from a spate of recent limits on debit and credit card fees, issuing payroll cards can be lucrative — the products were largely untouched by recent financial regulations.

New York Times
Jan 04, 2013 Secret and Lies of the Bailout:The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come

QUOTE: Not only did [the 2009 banking system bailout--Ed.] prevent another Great Depression, we've been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right? Wrong. It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences.

Rolling Stone
Nov 03, 2012 One Safety Net That Needs to Shrink (Fair Game)

QUOTE: ...Dodd-Frank actually widened the federal safety net for big institutions. Under that law, eight more giants were granted the right to tap the Federal Reserve for funding when the next crisis hits. At the same time, those eight may avoid Dodd-Frank measures that govern how we’re supposed to wind down institutions that get into trouble.

New York Times
Jun 13, 2012 Owners May Not Be Covered When Hackers Wipe Out A Business Bank Account

QUOTE: Computer security specialists say these crimes, called “corporate account takeovers,” have become increasingly common...most banks do not take responsibility for unauthorized debits from business accounts. Unless the owners have fraud insurance, they must shoulder the losses alone.

New York Times
Apr 06, 2011 Federal examiners protested help for politically connected bank, e-mails show

QUOTE: A decision... to help a politically connected bank in Boston left federal bank examiners there angry enough that some called it a “travesty of justice..." The chairman of OneUnited Bank, a friend of Rep. Maxine Waters (D-Calif.), had rendered it insolvent through lavish spending and bad investments... after Waters arranged a key Treasury Department meeting for the bank, it had won a bailout loan and a unique exemption from the FDIC’s accounting rules.

Washington Post
Mar 17, 2011 FDIC sues former WaMu executives for $900 million

QUOTE: The Federal Deposit Insurance Corp. is suing three former top executives of Washington Mutual Bank, ... “They focused on short-term gains to increase their own compensation, with reckless disregard for WaMu’s long- term safety and soundness,” according to the complaint... “It is patently unfair for the FDIC to expect an individual to have perfect foresight into a crisis that the FDIC itself did not see coming,” Rotella said.

Washington Post
Feb 05, 2011 Stock-Hedging Lets Bankers Skirt Efforts to Overhaul Pay

QUOTE: But it turns out that executives have a way to get around those best-laid plans. Using complex investment transactions, they can limit the downside on their holdings, or even profit, as other shareholders are suffering.

New York Times
Apr 03, 2010 How Washington Abetted the Bank Job

QUOTE: Mr. Bernanke said the Fed had known nothing about this....The collapse of Enron back in 2001 revealed that the biggest financial institutions, here and abroad, were busy creating products whose sole purpose was to help companies magically transform their debt into capital or revenue.

New York Times
Mar 12, 2010 Overdraft Protection: Why Bother?

QUOTE: Overdraft, in other words, is the very last resort. After a credit card. After account alerts. After tapping home equity. Or, presumably, after you’ve maxed out or ruined your credit and have no home equity left.

New York Times
Sep 21, 2009 Democrats Target Bank Overdraft Charges: Bailed-Out Firms Lean More Heavily on Fees

QUOTE: A backlash is brewing on Capitol Hill against banks that charge large fees for overdrafts without asking or telling customers...

Washington Post
Sep 16, 2009 Citing Risks, U.S. Seeks New Rules for Niche Banks (Back to Business)

QUOTE: While they [niche banks that give loans to business] have brought billions of dollars in deposits, thousands of jobs and millions in charitable donations to Salt Lake City, the banks have also drawn fire from Washington.

New York Times
Aug 11, 2009 Bankruptcy Judges, Justice Dept. Rip Mortgage Companies

QUOTE: Judges have found that major mortgages servicers regularly mess up basic accounting, improperly credit payments and charge unwarranted fees.

Aug 05, 2009 Despite Bailouts, Business as Usual at Goldman

QUOTE: Goldman [Sachs] executives are dismissive, even defiant, when critics argue that the bank is playing a heads-we-win, tails-you-lose game with American taxpayers. And yet the questions keep coming.

New York Times
Jun 20, 2009 Obama Pushes Financial Regulatory Overhaul

QUOTE: The administration’s plan would give the Federal Reserve greater supervisory authority over large financial institutions whose problems pose potential risks to the economic system. It would also expand the reach of the Federal Deposit Insurance Corporation to seize and break up troubled institutions.

New York Times
May 12, 2009 gs10 Things Your Bank Won't Tell You

QUOTE: 2. “Our fees will only go up"....3. “We change our interest rates all the time"....4. “College campuses are a gold mine for us”....8. “Your money might be better off elsewhere.”

Smart Money
Apr 28, 2009 Feeling Secure, Some Banks Want to Be Left Alone

QUOTE: industry executives are taking issue with major elements of the president’s bank plan....But bankers are increasingly eager to extricate themselves from the government’s grasp, and worry that Washington will impose new restrictions on their businesses if the government’s already considerable role in the industry grows.

New York Times
Mar 07, 2009 Mortgage Fraud Case Poses Federal Quandary

QUOTE: she [Waver Brickhouse] fell behind on her mortgage payments and turned to a so-called rescue firm, which, court papers allege, tricked her into signing away the deed to her Brooklyn home. She says the company, Home Savers Consulting, secretly sold her home, with the help of a mortgage from IndyMac Federal Bank, and ran up huge new debts. ...faces a new problem. She must convince the Federal Deposit Insurance Corporation, which last year took control of IndyMac, now insolvent, that her mortgage payments should not include at least $150,000 tacked on by fraud.

New York Times
Sep 16, 2008 FDIC insurance protects your money (except when ...)

QUOTE: "The lessons of the Depression prompted the government to act quickly to protect bank customers from disasters beyond their control," says Kathleen Nagle, associate director for consumer protection at the FDIC.

Bankrate.com
Mar 18, 2008 Amid Brokers' Woes, Investor Accounts Are Mostly Protected

QUOTE: ...Bear's situation raises concerns about what could happen to individual investors if a major brokerage firm goes under. Fortunately, the system of regulatory rules in place should protect most investors.

Wall Street Journal, The (WSJ)
Jun 01, 2007 Investors looking for high yields should use caution

QUOTE: If you come across a financial or banklike offer that piques your interest but also makes you wonder even a little bit if it's legitimate, Stevenson urges you to contact your state banking supervisor or federal regulators before sending money.

Bankrate.com

36 Articles and Resources. Go to:  [Next 16]