> Also, the original statement is not quite correct - FDIC is funded by a special levy on all US banks, so while on principle it's backed by the "full faith and

> Also, the original statement is not quite correct - FDIC is funded by a special levy on all US banks, so while on principle it's backed by the "full faith and credit" of the US government, in actuality the money comes from the banking system itself. The banking system funds an insurance fund, but if that insurance fund is exhausted, the federal government is backstopping it.