Thanks to one of my partners, Global Financial Private Capital (GPFC) for this piece. Here’s an excerpt:
…but the Federal Deposit Insurance Corp. (FDIC) pays Depositors when a Bank Fails, RIGHT?
The definitive answer to this question is both Yes and No:
Yes, the FDIC insures all deposits held within member banks and thrifts, currently up to
$250,000. As this insurance is backed by the “full faith and credit of the United States
Government”, the FDIC should be able to cover all future failures.
No, the FDIC is required by law to maintain a Deposit Insurance Fund (DIF) of at least 1.15% of total insured deposits. Currently, DIF is approximately $20 billion in the red, a negative ratio of 0.39% of insured deposits.
To read the entire article click: http://tinyurl.com/2vzamcb
Happy selling, stay focused.