What is the FDIC?

hi it's Patti her shop marketplace the

fdic or federal deposit insurance

corporation is a lot like severus snape

maria's this is the best that I could do

I'm afraid you may remember that snape

was Harry Potter's potions teacher at

Hogwarts and a deeply misunderstood

fellow kind of like the FDIC which is

much maligned by a lot of the American

public there are those on the Left who

claim it's just a big corporate welfare

fund for big banks and those on the

right who say it's poorly managed and

could end up costing the taxpayer

billions of dollars now the FDIC though

like severus snape has got our best

interests at heart it's got a number of

roles which include regulating some

banks but its main job is to safeguard

our savings there we go and it does this

by acting as an insurance fund now it is

owned by the government but it's not

funded by the government it's kind of

much more like your health plan you know

where workers put a certain amount of

money into the plan every month then if

somebody gets sick the fund managers dip

into that pool of money and pay the

doctors in the same way banks pay money

into the FDIC and then if one of them

gets sick or goes bust or runs out of

money or whatever it is then the

depositors don't have to worry about

their savings because the FDIC will dip

into the pool and make them whole up to

a certain amount now the big concern

about the FDIC is that if a whole bunch

of big banks go bust all at the same

time well then the fun could run out of

money in which case it's going to go to

the government and the government would

step in and bail it out with taxpayer

dollars so clearly just like severus

snape the FDIC does have some issues but

it has our best interests at heart and

it was actually very useful during the

financial crisis when it really

preserved the banking sector and held it

together by reassuring depositors that

their savings were safe which is a good

thing because if we'd all gone running

down to the bank to get all of our money

out at the same time could have left us

very badly needing a drink and no the

FDIC had nothing to do with the death of

Albus Dumbledore