Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is an independent government agency created in 1933 by the U.S Congress to insure deposits of banks and other financial institutions against loss due to bank failure or malicious acts. The FDIC provides deposit insurance coverage for nearly all U.S banking institutions, protecting more than $6 trillion in customer deposits.

History

Created as part of President Franklin D Roosevelt’s New Deal legislation with the passage of the Banking Act of 1933, the FDIC was established during a period when American confidence in its banking system had been shattered following several years of widespread bank failures across America that resulted from economic hardships at large scale such as stock market crash years prior and Great Depression . To restore public trust and faith in US banking system , FDR signed into law creating FDIc which provided depositors with protection up to $2,500 per account type – significantly higher amount then what previously existed before it’s creation .

Structure & Function
In order to cover potential losses caused by member bank insolvencies, each insured institution pays premiums annually based on their total assets; these funds are deposited into FDIC’s Deposit Insurance Fund (DIF). With over 8 million accounts covered nationwide , this fund serves as primary source for covering any losses incurred should one or more insured members fail while also providing assistance programs like consumer education initiatives aimed towards helping consumers better understand principles sound money management practices . Additionally , not only does FDIc provide basic deposit protections but they also regulate state-chartered nonmember banks under certain circumstances along having power investigate allegations wrongful activities involving member institutions too if need be.. Currently led Chairman Jelena McWilliams who took office 2018 after being appointed president Donald Trump two year tenure has seen numerous changes including new rules proposed increased transparency among others meant ensure safety stability US economy going forward .

Conclusion
Since beginning operation back 1930s ,FDIc has helped maintain strong stable national banking environment United States through various actions taken both directly indirectly protect customers’ investments safeguarding them against risk associated financial instability long run…. As result today many people have peace mind knowing that their hard earned savings remain safe secure even toughest times no matter happens individual institution level therefore proving itself invaluable tool modern day society time again making sure we never forget important role plays keeping our finances secure future generations come