Episode 299: Why the FDIC is NOT Your Superhero

In this episode, we ask: What’s that up in the sky? Can the FDIC keep your money safe? Who relies on this great institution? Who can rest easy? Wait?! Who is breaking a sweat? What would happen in a sudden wave of bank failures or sudden financial crisis? What about times of financial stress? How...

In this episode, we ask:

What’s that up in the sky?
Can the FDIC keep your money safe?
Who relies on this great institution?
Who can rest easy?
Wait?!
Who is breaking a sweat?
What would happen in a sudden wave of bank failures or sudden financial crisis?
What about times of financial stress?
How might this pose a BIG risk?
What about exposure?
What about protecting depositor funds?
Is this superhero up to the challenge of the current economic climate?
What is the Federal Deposit Insurance Corporation (FDIC)?
What happened earlier this year?
Where did the money come from?
Who funds the FDIC?
What happens to the yield?
Who is the US Treasury?
How many banks are in a precarious position now?
Is there any end in sight?
What has happened as interest rates have risen?
What about fractional reserve banking?
What about a credit crunch?
What about regional banks?
How many funds will be protected?
Where are people moving money?
Where will the government get the money to guarantee deposits?
What if you only got 1% of your money back in the event of a collapse?
What about the bank lobby?
What is book value?
What is market value?
What is fractionalized methodology?
How are bank reserve regulations different from insurance reserve regulations?
How are insurance companies regulated?
What does NAIC say about reserves?
Why do insurance companies need much larger reserves?
Do insurance companies have an enormous edge over banks?
Would the government step in and cover your deposits?
Who decides?
Who is systemically important?
What about lending?
What did Mark Twain say?
Is it raining?
What can we do about this?
What is within our control?
Who is your superhero?
What happens with policy loans when banks are in crisis?
Who wants to become their own source of financing?
What are the takeaways?