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The FDIC is a US government agency that provides deposit insurance to protect depositors in case of bank failures. The agency was created in response to the widespread bank failures that occurred during the Great Depression, and today it insures deposits at over 5,000 banks and savings associations in the United States.
The FDIC protects bank deposits through several measures, including deposit insurance, bank monitoring and regulation, and acting as a receiver when banks fail. Deposit insurance provides each depositor with up to $250,000 per insured bank, covering checking accounts, savings accounts, CDs, and other deposit accounts. The agency closely monitors and regulates banks to ensure their safety and soundness, and takes over failed banks' assets and liabilities to sell their assets and pay off their debts.
Overall, the FDIC's role in protecting bank deposits is critical to ensuring the safety and stability of the banking system in the United States. This gives depositors peace of mind knowing that their money is protected even in the event of a bank failure.
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