Insured institutions are required to place signs at their place of business stating that "deposits are backed by the full faith and credit of the United States Government." Since the start of FDIC insurance on January 1, 1934, no depositor has lost any insured funds as a result of a failure.
The Board of Directors of the FDIC is the governing body of the FDIC. The Board is composed of five members, three appointed by the President of the United States with the consent of the United States Senate and two ex officio members. The three appointed members each serve six year terms. No more than three members of the Board may be of the same political affiliation. The President, with the consent of the Senate, also designates one of the appointed members as Chair of the Board, to serve a five year term, and one of the appointed members as Vice Chair of the Board, to also serve a five year term.
As of July 9, 2011, the members of the Board of Directors of the Federal Deposit Insurance Corporation are:
During the 1930s, the U.S. and the rest of the world experienced a severe economic contraction that is now called the Great Depression. In the U.S. during the height of the Great Depression, the official unemployment rate was 25% and the stock market had declined 75% since 1929. Bank runs were common because there wasn't insurance on deposits at banks, banks kept only a fraction of deposits in reserve, and customers ran the risk of losing the money that they had deposited if their bank failed.
Federal deposit insurance received its first large-scale test in the late 1980s and early 1990s during the savings and loan crisis (which also affected commercial banks and savings banks).
The brunt of the crisis fell upon a parallel institution, the Federal Savings and Loan Insurance Corporation (FSLIC), created to insure savings and loan institutions (S&Ls, also called thrifts). Due to a confluence of events, much of the S&L industry was insolvent, and many large banks were in trouble as well. The FSLIC became insolvent and merged into the FDIC. Thrifts are now overseen by the Office of Thrift Supervision, an agency that works closely with the FDIC and the Comptroller of the Currency. (Credit unions are insured by the National Credit Union Administration.) The primary legislative responses to the crisis were the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), and Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA). As a result of the financial crisis in 2008, twenty-five U.S. banks became insolvent and were taken over by the FDIC. However, during that year, the largest bank failure in terms of dollar value occurred on September 26, 2008 when Washington Mutual experienced a 10-day bank run on its deposits. On July 31, 2009, the FDIC launched its Legacy Loans Program (LLP). This initiative is aimed at helping banks rid their balance sheets of toxic assets so they can raise new capital and increase lending.
The Board of Directors of the FDIC is the governing body of the FDIC. The Board is composed of five members, three appointed by the President of the United States with the consent of the United States Senate and two ex officio members. The three appointed members each serve six year terms. No more than three members of the Board may be of the same political affiliation. The President, with the consent of the Senate, also designates one of the appointed members as Chair of the Board, to serve a five year term, and one of the appointed members as Vice Chair of the Board, to also serve a five year term.
As of July 9, 2011, the members of the Board of Directors of the Federal Deposit Insurance Corporation are:
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Federal deposit insurance received its first large-scale test in the late 1980s and early 1990s during the savings and loan crisis (which also affected commercial banks and savings banks).
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