FDIC
Raise Limit on Insured Deposits: $100K to $250K
Date:
October 3, 2008
Who:
FDIC
Policy Area:
Financial Sector Policy
Economic Target:
Consumers
Economic Target:
Depository Institutions
Action Type:
Regulatory Change
Maximum Amount:
$700.00 billion The Emergency Economic Stabilization Act of 2008 temporarily raised from $100,000 to $250,000 the amount of deposit and share insurance in FDIC and Federal Credit Union member organizations. Initially, this law stated that the increased limit on insured deposits would last until 12/31/2009. However, On 5/20/2009 President Obama signed the Helping Families Save Their Homes Act, extending the temporary deposit insurance limit of $250,000 untill 12/31/2013. After that date, the FDIC deposit insurance limit will return to $100,000 except for IRAs and other retirement accounts.
Notes:
Limit will return to $100,000 after Dec. 31, 2013. Maximum amount indicates total value of new insured deposits.
Public-Private Investment Fund: FDIC Guarantees
Date:
February 10, 2009
Who:
FDIC
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$600.00 billion
Amount Spent:
$0.73 billion See the companion TARP entry for the Public-Private Investment Program (PPIP) and the Fed entry for PPIP.
Program first announced by Treasury Secretary Geithner on 2/10/2009.
Notes:
Maximum risk is value of all debt that could possibly be guaranteed by FDIC under the current restrictions of a 6:1 debt-equity ratio. Amount spent as of 9/16/2009 (http://www.fdic.gov/news/news/press/2009/pr09172.html). Deficit impact unknown.
FDIC Guarantee of Citigroup Assets
Date:
November 23, 2008
Who:
FDIC
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$10.00 billion Part of a government guarantee of $301 billion in Citigroup assets by multiple entities (Treasury, FDIC, Federal Reserve). After Citigroup absorbs the first $29 billion in losses, the remaining losses are split 90:10 between the government and Citigroup, with the first $5 billion absorbed by the Treasury with TARP funds, the next $10 billion paid by the FDIC, and remaining losses covered by the Federal Reserve with a non-recourse loan.
Notes:
Amount spent updated as of 12/31/08.
On 1/16/2008, the Treasury revised its figure for total Citigroup guaranteed assets from $306 billion down to $301 billion.
Deficit impact unknown.
FDIC Bank Liquidity Guarantee Program
Date:
October 14, 2008
Who:
FDIC
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$609.19 billion
Amount Spent:
$313.07 billion Establishement of Temporary Liquidity Guarantee Program (TLGP), under which the FDIC guarantees unsecured new loans issued by banks, thrifts, and selected holding companies. Debt must be issued by June 30, 2009 and mature by June 30, 2012. Program also fully insures certain of non-interest-bearing deposit transaction accounts, much of which exceeds the existing $250,000 deposit insurance limit. Accounts guaranteed through December 31, 2009.
Notes:
Maximum amount indicates market size of total debt potentially subject to guarantee, as reported on the FDIC's monthly report for the program. Amount spent indicates total guarantees for unsecured new debt. Both figures are as of 1/4/2010. Deficit impact unknown.
FDIC Bank Takeovers
Who:
FDIC
Maximum Amount:
$494.12 billion
Amount Spent:
$90.06 billion
Deficit Impact:
$90.06 billion In 1933, the federal government created the Federal Deposit Insurance Corporation (FDIC) in order to promote consumer confidence in banking and insure the funds the public was placing in financial institutions. The FDIC has two main responsibilities; the first is insuring all of the deposits in member banks for individual depositors, up to $250,000, and the second is to receive all of the "failed banks" in the United States. A bank fails when it can no longer meet its responsibilities to depositors, and is closed by a state or federal bank regulatory agency.
Source:
Notes:
As of 12/14/2012 regulators have closed a total of 140 banks in 2009, 157 banks in 2010, and 462 banks since January 2008.
