The FDIC, or Federal Deposit Insurance Corporation, is a quasi-governmental corporation created in 1933 alongside the Glass-Steagall act with the purpose of protecting deposits in financial institutions.
The FDIC covers almost all retail banks and this means that any deposits up to the value of $250,000 are insured and cannot be lost even if the bank files for bankruptcy.
During the 2007/2008 financial crisis the FDIC was one of the key entities for ensuring the stability of banks such asWachoviaandCitigroup.
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