It's not actually the fed who does it. It's the FDIC, which is a different entity. The FDIC's money comes from... banks. Technically the FDIC is backed by the U

It's not actually the fed who does it. It's the FDIC, which is a different entity. The FDIC's money comes from... banks. Technically the FDIC is backed by the US Government and has a credit line with the US Treasury, but they seem to get along fine with the money they collect from banks.