Company Research Report: Federal Deposit Insurance Corporation (FDIC)

Company Overview

• Name: Federal Deposit Insurance Corporation (FDIC)

• Mission: The FDIC aims to maintain stability and public confidence in the nation's financial system. This is achieved by insuring deposits, examining and supervising financial institutions, making large and complex financial institutions resolvable, and managing receiverships.

• Founded: The agency was created in 1933 by the Congress in response to widespread bank failures during the 1920s and early 1930s.

• Key People:

• Acting Chairman: Travis Hill

• Key Directors: Rodney E. Hood (Acting Comptroller of the Currency), Russell Vought (Acting Director, Consumer Financial Protection Bureau)

• Headquarters: The FDIC is headquartered in Washington, DC, United States.

• Number of Employees: No information is available.

• Revenue: The FDIC is funded by premiums that banks and savings associations pay for deposit insurance coverage and does not receive Congressional appropriations.

• Known For: The FDIC insures deposits in U.S. banks and thrifts. It has a track record of no depositor losing a single penny of insured funds since FDIC insurance was introduced in 1934.

Products and Services

• Deposit Insurance:

• The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC insures deposits but does not cover securities, mutual funds, or similar investments offered by banks and thrift institutions.

• Supervision and Examination:

• The FDIC supervises over 5,000 banks and savings associations to ensure their operational safety, soundness, compliance with consumer protection laws, and community reinvestment.

• Resolution and Receivership:

• The FDIC manages the resolution of failing banks to protect insured depositors. It often does this by transferring deposits and loans from failed institutions to healthy ones.

Recent Developments

• January 21, 2025: The FDIC withdrew from the Network of Central Banks and Supervisors for Greening the Financial System, which indicates a shift in focus or strategy concerning environmental financial oversight.

• January 17, 2025: Millennium Bank, Des Plaines, Ill, assumed all deposits of Pulaski Savings Bank, Chicago, Ill.

• December 12, 2024: FDIC-insured institutions reported a net income of $65.4 billion in the third quarter.

• Upcoming Initiatives:

• Initiatives to promote economic inclusion and transparency under various programs like "Trust through Transparency."

Recent Partnerships

• Millennium Bank's assumption of Pulaski Savings Bank deposits is a form of partnership facilitated by the FDIC to ensure financial stability and depositor confidence in the event of bank failures.

Conclusion

The FDIC plays a critical role in maintaining the stability and public confidence in the U.S. financial system by insuring deposits, supervising financial institutions, and managing bank failures. While recent activities and changes in participation in international networks indicate a dynamic approach to current economic and financial challenges, it remains committed to its foundational mission of protecting depositors and ensuring the smooth operation of the banking system.