Federal Deposit Insurance Corporation (FDIC)
The Federal Deposit Insurance Corporation (FDIC) is
a United States government corporation created by the
Glass-Steagall Act of 1933.
The FDIC is currently projected to be guaranteeing deposit of
almost $4.5 trillion. To do that it has an estimated
reserves of just over $55 billion.
The threat to the system are the massive but not publicly
disclosed `troubled assets.` One of the largely unstated
reasons for the Troubled Asset Recovery Program (TARP)
legislation was that the Federal government, through
both the FDIC as well as the mortgage guarantee programs
Fannie Mae and Freddie Mac, was already obligated to
pay.
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