On 9 Mar 2005 at 18:26, Noel Stoutenburg wrote:

> dhbailey wrote:
> 
> > Can anybody produce corporate statements (especially from publicly
> > traded companies) where the corporation tries to reassure the
> > customer what will happen when/if the corporation goes out of
> > business?  Don't raise the issue of banks and the FDIC, because
> > they're required by law to make those statements about being
> > insured.
> 
> It's more than that; any bank chartered since the FDIC was created is
> required by law to be insured by the FDIC.  I remember reading 30
> years ago, of 13 banks (at least 13 is the number I remember) in the
> U.S., that are still in existence since before the creation of the
> FDIC, which are not members, and a not required to be, since their
> charters predate the FDIC's creation.

This makes little sense at all. It's not the bank that's insured, 
it's the account holders, which is up to $100K per account holder of 
each bank (not $100K per account, if I'm remembering correctly). It's 
the account holder that is insured by the FDIC, not the bank itself. 
I don't see why a bank's having been chartered before the creation of 
the FDIC would exempt them. Certainly many banks still in business 
existed before the FDIC was chartered (at least, the entities that 
merged to create the existing banks), and they are all FDIC insured.

Any citations on this one?

-- 
David W. Fenton                        http://www.bway.net/~dfenton
David Fenton Associates                http://www.bway.net/~dfassoc

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