-What did the government hope to achieve by creating it?
-What type of bank losses does it cover?
And sources would be appreciated XD
Mainly to ensure compliance with a set of known rules.
From investopedia:
http://www.investopedia.com/terms/f/fdic…
Here is the history of the FDIC:
http://www.investopedia.com/articles/eco…
Also look at the Emergency Banking Act of 1933
http://www.investopedia.com/terms/e/emer…
Also wikipedia
http://en.wikipedia.org/wiki/FDIC
make good money with genuine hyip 1-3% daily check out http://www.geniusfunds.com/?c=243425 Report Abuse
It was created after the crash at the beginning of the Great Depression. It stops banks from failing because people think they;re going to fail and draw all their money out, which actually causes a failure of an otherwise sound bank. Now people don't rush to withdraw because their deposits are insured.