MONROE - Most Ame-ricans in the past two generations have not seen a run on the banks like that seen by the character George Bailey in the movie "It's a Wonderful Life."
A run on the banks, when depositors attempt to retrieve their money before a bank collapses, which further ensures the bank's collapse, has been mostly eliminated because of the Federal Deposit Insurance Corporation (FDIC).
The FDIC, created by Congress in 1933 to restore public confidence in the nation's banking system, insures deposits at the nation's 7,760 banks and savings associations.
It receives no federal tax dollars; insured financial institutions fund its operations.
Banking depositors are currently insured at up to $250,000 per account.
The FDIC can't prevent a bank from failing - the number of failed banking institutions in 2010 totaled 149 banks by the end of November. In 2009, 140 banks failed. The total cost to the FDIC Deposit Insurance Fund (DIF) for the 149 banking failures now totals $21.9 billion.
The three latest banking failures for the week ending November 19, 2010, included First Banking Center, Burlington, Wis., which had branches in Monroe, Darlington, Shullsburg and Albany.
But most depositors barely notice a change in their banking business as the FDIC facilitates the bank takeover, sometimes making an agreement with another, more solvent bank to assume the deposits.
To protect depositors, the FDIC entered into a purchase and assumption agreement with First Michigan Bank, Troy, Michigan, to assume most all of the deposits of First Banking Center.
The 17 branches of First Banking Center reopened Nov. 20 as branches of First Michigan Bank.
The number of banking institutions on the Federal Deposit Insurance Corporation's (FDIC) Problem List climbed from 829 in June to 860 at the end of the third quarter in September. About one out of eight, or 11 percent, of all FDIC-insured institutions are on the Problem Bank List now.
A run on the banks, when depositors attempt to retrieve their money before a bank collapses, which further ensures the bank's collapse, has been mostly eliminated because of the Federal Deposit Insurance Corporation (FDIC).
The FDIC, created by Congress in 1933 to restore public confidence in the nation's banking system, insures deposits at the nation's 7,760 banks and savings associations.
It receives no federal tax dollars; insured financial institutions fund its operations.
Banking depositors are currently insured at up to $250,000 per account.
The FDIC can't prevent a bank from failing - the number of failed banking institutions in 2010 totaled 149 banks by the end of November. In 2009, 140 banks failed. The total cost to the FDIC Deposit Insurance Fund (DIF) for the 149 banking failures now totals $21.9 billion.
The three latest banking failures for the week ending November 19, 2010, included First Banking Center, Burlington, Wis., which had branches in Monroe, Darlington, Shullsburg and Albany.
But most depositors barely notice a change in their banking business as the FDIC facilitates the bank takeover, sometimes making an agreement with another, more solvent bank to assume the deposits.
To protect depositors, the FDIC entered into a purchase and assumption agreement with First Michigan Bank, Troy, Michigan, to assume most all of the deposits of First Banking Center.
The 17 branches of First Banking Center reopened Nov. 20 as branches of First Michigan Bank.
The number of banking institutions on the Federal Deposit Insurance Corporation's (FDIC) Problem List climbed from 829 in June to 860 at the end of the third quarter in September. About one out of eight, or 11 percent, of all FDIC-insured institutions are on the Problem Bank List now.