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You are misinformed. FDIC is not funded by the US govt. It operates on premiums. > The FDIC receives no Congressional appropriations - it is funded by premiums
by cscurmudgeon 4y ago
You are misinformed. FDIC is not funded by the US govt. It operates on premiums.
> The FDIC receives no Congressional appropriations - it is funded by premiums that banks and savings associations pay for deposit insurance coverage. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and savings association in the country.
https://www.fdic.gov/about/what-we-do/index.html https://www.fdic.gov/about/what-we-do/index.html
(If anything, the US govt. and people receive more in taxes from the startup demographic and you should be looking at govt. corruption first if you are keen on saving taxpayer money.)
- notch898a 4y agoI am not mistaken. I said the amount over 250k. I in fact never said the FDIC would even compensate them for that, just that they're on their own.
- cscurmudgeon 4y ago> Not big enough to bail out, the regular people didn't get it either in the great recession. Why the bail out comment though? FDIC doesn't run on govt money. So even if FDIC helps them out with amounts greater than 250k it won't come out of govt. money.
- notch898a 4y agoNah then it would simply be fraud, as they'd be misrepresenting the service offered for the premiums. Of course if the government required FDIC to charter most retail banks, and you had to have a bank account to say not have all your cash stolen by crooked cops by the side of the road in civil forfeiture, then It'd look a lot more like a public good supported by an indirect tax on the return on your deposit. Which isn't far from the truth.