FDIC
The Federal Deposit Insurance Corporation, the US agency that insures bank deposits and supervises financial institutions.
What is FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent US government agency created by the Banking Act of 1933 in response to the banking panics of the Great Depression. The FDIC insures deposits at member banks up to $250,000 per depositor, per insured bank, per ownership category — meaning a depositor with accounts in different ownership categories can have more than $250,000 insured at one bank. The FDIC also supervises and examines state-chartered banks that are not members of the Federal Reserve System, and it serves as receiver for failed banks. When a bank fails, the FDIC either facilitates an acquisition by a healthy institution or pays insured depositors directly, typically within two business days.
Example
When Silicon Valley Bank failed in March 2023, the FDIC was appointed receiver. Because SVB had a large proportion of deposits above the $250,000 insurance limit — held by venture-backed startups — the FDIC and Treasury invoked a systemic risk exception to fully protect all depositors. This prevented a broader bank run among similarly situated institutions, demonstrating the FDIC's role as a financial stability backstop beyond its standard insurance limits.
Source: FDIC — Deposit Insurance FAQs