Monday, August 8, 2011

Despite Downgrade, Insured Deposits Remain Secure

Despite the downgrade from Standard and Poor's, insured deposits remain safely backed by the FDIC.

The FDIC, an independent agency fully funded by banking industry premiums, is financially secure and has the resources it needs to protect customer deposits.

Nineteen months ago banks paid three years of assessments to the FDIC -- totaling nearly $46 billion -- to assure the agency had the necessary funds to protect insured depositors.

The banking industry remains committed to making sure the FDIC has the resources it needs to protect insured depositors, and this commitment is independent and unrelated to the rating of U.S. debt. Additionally, the banking industry’s capital -- $1.53 trillion -- stands behind the FDIC to assure it remains strong.

Last week, an FDIC spokesman confirmed the agency’s strong financial position:

The FDIC’s Deposit Insurance Fund has more than adequate liquidity, currently more than $44 billion, to meet all of our deposit insurance responsibilities. The FDIC receives no federal tax dollars. Insured financial institutions fund the DIF [Deposit Insurance Fund].

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