Original certificate from the Federal Deposit Insurance Corporation Certificate - Washington DC
issued in 1935 to the Casco Bank and Trust Company in Portland Oregon. This item has the signatures of the FDIC Chairman, Leo Thomas Crowley and Acting Secretary. There is a gold embossed seal affixed to the face.
Leo Thomas Crowley (August 15, 1889–1972) was a member of the cabinet of President Franklin D. Roosevelt as the head of the Foreign Economic Administration. Previously he had served as Alien Property Custodian and as chief of the Federal Deposit Insurance Corporation.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation operating as an independent agency created by the Banking Act of 1933. As of August 2014, it provides deposit insurance guaranteeing the safety of a depositor's accounts in member banks up to $250,000 for each deposit ownership category in each insured bank. As of August 27, 2014, the FDIC insured deposits at 6,638 institutions. The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages banks in receiverships (failed banks). The FDIC receives no congressional appropriations — it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities.
Institutions insured by the FDIC are required to place signs at their place of business stating that "deposits are backed by the full faith and credit of the United States Government." Since the start of FDIC insurance on January 1, 1934, no depositor has lost any insured funds as a result of a failure.
During the 1930s, the United States and the rest of the world experienced a severe economic contraction known as the Great Depression. In the U.S. during the height of the Great Depression, the official unemployment rate was 25% and the stock market had declined 75% since 1929. Bank runs were common. Banks generally hold reserve funds in amounts equal to only a fraction of the amounts of the banks' deposit liabilities and, because there was no insurance coverage for the deposits at the time of the Depression, customers ran the risk of losing the value of their deposits if the bank failed.
President Franklin Delano Roosevelt signs the Banking Act of 1935.
On June 16, 1933, President Franklin D. Roosevelt signed the Banking Act of 1933. This legislation:
The Banking Act of 1935 made the FDIC a permanent agency of the government and provided permanent deposit insurance maintained at the $5,000 level.
Gave the FDIC authority to provide deposit insurance to banks
Gave the FDIC the authority to regulate and supervise state non-member banks
Funded the FDIC with initial loans of $289 million through the U.S. Treasury and the Federal Reserve, which were later paid back with interest
Extended federal oversight to all commercial banks for the first time
Separated commercial and investment banking (Glass–Steagall Act)
Prohibited banks from paying interest on checking accounts
Allowed national banks to branch statewide, if allowed by state law.
Historical insurance limits
1934 – $2,500
1935 – $5,000
1950 – $10,000
1966 – $15,000
1969 – $20,000
1974 – $40,000
1980 – $100,000
2008 – $250,000
Congress approved a temporary increase in the deposit insurance limit from $100,000 to $250,000, which was effective from October 3, 2008, through December 31, 2010. On May 20, 2009, the temporary increase was extended through December 31, 2013. However, the Wall Street Reform and Consumer Protection Act (P.L.111-203), which was signed into law on July 21, 2010, made the $250,000 insurance limit permanent. In addition, the Federal Deposit Insurance Reform Act of 2005 (P.L.109-171) allows for the boards of the FDIC and the National Credit Union Administration (NCUA) to consider inflation and other factors every five years beginning in 2010 and, if warranted, to adjust the amounts under a specified formula.
History from Wikipedia, Encyberpedia and
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