#FDIC

[thingstrumperssay]

And there will be another great depression under him when his tariffs and mass deportation raises the price of everything significantly.

[saywhat-politics]

Trump and DOGE want to slash the FDIC's workforce by 20%, leaving fewer watchdogs on the beat to police Wall Street misconduct.

Remember: the FDIC was created during the Depression to protect people's deposit accounts.

Gutting it could lead to another financial meltdown.

[bitchesgetriches]

So I'm nowhere near wealthy enough for this to matter, but I've always wondered something. Do banks ensuring your money up to $250000 with the FDIC mean you should never keep more than that amount in the same bank? Should you use more than one if you're rich in case you need that insured money?

So, funny story.

My grandparents (an Italian immigrant who barely survived childhood during WWII and a white-passing mixed race man who barely survived childhood in the South) were EXCEEDINGLY cautious about most things because of their lived experiences. Nonetheless, they got into the stock market in the 1960s without fully understanding it, lost a bunch of money in a downturn, and immediately swore off investing ever again.

After that, they kept their money in FDIC-insured bank... s. Banks. Multiple. At the time my grandfather died at age 94, my grandparents had several bank balances of $250,000 in non-interest-bearing accounts. It was a massive headache for my dad and his siblings to run around FINDING, consolidating, and organizing the accounts to secure elder care for my grandmother.

My grandparents weren't WRONG for having multiple accounts! And they weren't wrong for not trusting financial institutions beyond the $250k the FDIC insures. But they would have been a lot better off diversifying their assets and accounts. Once they surpassed $250k in savings, they would've been much better off investing that money in the stock market, putting it in an HSA, buying additional property, investing in small businesses, etc.

But again, they were both survivors of significant trauma. It gave them enormous peace of mind to know that their savings were insured. Investing in the stock market was too stressful and volatile for them. This is just another example of how PERSONAL FINANCE IS PERSONAL.

Now here is some required reading for context:

Wait... Did I Just Lose All My Money Investing in the Stock Market? 

Cheat on Your Bank—It's Not Your Girlfriend

Investing Deathmatch: Timing the Market vs. Time IN the Market 

The Dark Magic of Financial Horcruxes: How and Why to Diversify Your Assets 

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[dostoyevsky-official]

Trump Advisers Eye Bank Regulator Consolidation After Targeting CFPB

In recent discussions, Trump advisers and allies have examined whether it is possible to collapse the Federal Deposit Insurance Corp. into the Treasury Department, according to people familiar with the matter. They have also discussed combining the FDIC’s regulatory role with the Office of the Comptroller of the Currency under Treasury. [...] Staff inside the FDIC and the OCC expect to hear from DOGE soon, according to people familiar with the matter. [...] The administration wants at least de-facto consolidation of the bank regulators, even if the agencies remain separate entities. It’s unclear whether the administration could do that on its own. Congressional support would be needed to officially combine agencies. In a recent proposal, one individual would lead both the OCC and the FDIC, people familiar with the matter said. That would allow the OCC to attempt to take over all of the FDIC’s work supervising banks and potentially its role winding down failed banks, the people said. [...] In any plan that advances, significant cuts are likely at the bank regulators. Trump has moved to freeze hiring in the federal government and force workers back to the office full-time. DOGE has been the main driver of cuts. Bank executives have been telling Trump their industry suffers under too much regulation. For years, the CEOs have argued other industries are encroaching on their business without the same regulatory hurdles.

we are all going to starve.

[onlytiktoks]

[fuck-u-maga]

Dumb ass people voted for this

[thashining]

"He’s also talking about gutting the NCUA along with the FDIC, and having both absorbed into the treasury. They want all deposit insurance essentially done away with."

"DOGE backs bitcoin so they are looking to destabilize banks and force consumers into using bitcoin which is where they get $$ "from"

[political-us]

The Federal Deposit Insurance Corporation (FDIC) News:

Advisors within the Trump administration have reportedly explored the possibility of shrinking or eliminating certain financial regulatory agencies, including the FDIC. This has led to discussions about the future role and structure of these institutions.

The FDIC insures deposit accounts such as checking accounts, savings accounts, money market deposit accounts, and certificates of deposit (CDs) at FDIC-insured banks. If a bank fails, the FDIC steps in to reimburse depositors, up to the insurance limit.

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category (e.g., individual, joint accounts).

For example, if you have $250,000 in a checking account and $250,000 in a savings account at the same bank, both accounts would be fully insured. However, if you have more than $250,000 in one account, the amount above $250,000 is not insured.

This is the only thing protecting your money if a bank fails.

[clonebrainrot]

Trump and Musk are totally gonna get rid of FDIC insurance which is the insurance the government puts for banks so you don’t lose your money if the bank closes or for whatever reason. It covers around 200,000 dollars there have been rumblings about him and Elon getting rid of it.

If they do expect run on banks to become a regular thing again. And possible economic collapse with it. Like this is one of the last things in place we still have to prevent a second Great Depression besides the security and exchange commission. Which honestly they’ll probably also get rid of

[justinspoliticalcorner]

Alex Lang at The Independent:

Donald Trump’s transition team has reportedly looked at ways to shrink or eliminate banking oversight - a move that could have dramatic impacts on everyday Americans and protecting their money. In interviews with candidates to oversee the banking sector, Trump advisers and DOGE - the advisory Department of Government Efficiency - officials have asked if the president-elect can abolish the Federal Deposit Insurance Corp., according to the Wall Street Journal. Trump’s team has also asked if the FDIC could be absorbed into the Treasury Department. Any move to eliminate the FDIC would require Congressional approval. But, if it were to happen, it would be a massive shakeup in the industry. The FDIC was created during the Great Depression. It is designed to help bulk up faith in the nation’s banking system. Most people know the agency as it insures deposits in banks up to $250,000.

So if there was a run on a bank or one would collapse, people with up to $250,000 wouldn’t lose their money because it’s insured by the federal government. If the FDIC went away, everyday people could lose that insurance or guarantees that their money will still be available in the event of a bank run or collapse. The WSJ report notes that while banks hope Trump will ease regulations, the FDIC insurance is considered “near sacred.” A move to eliminate that deposit insurance could cause panic among customers - and cause people to demand their money so it’s no longer at risk. Last year, several banks failed and it caused customers to shift their money to big banks and away from smaller groups. Sources told the WSJ that Trump’s team, which includes DOGE advisers Elon Musk and Vivek Ramaswamy, have also asked nominees about combining or restructuring bank regulators, including the FDIC and Federal Reserve.

The crooked Trump Misadministration is floating a dangerous 2nd Great Depression-causing idea by potentially closing down FDIC. Such a move would put people's savings and checking accounts at risk.

[saywhat-politics]

The next DOGE target could be the FDIC, which was already experiencing a staffing shortage before Trump's hiring freeze.

Remember: the FDIC was created during the Depression to protect people's deposit accounts.

Gutting it could lead to another financial meltdown. - Robert Reich

[bitchesgetriches]

Hey, so ... how worried are we about the FDIC these days? Are we at the floorboard jars of cash point? Or is it important enough for the fat cats at the top that the banks will stick around?

I'm less worried about the FDIC than I am about the SEC and CFPB. Things are more likely to get corrupt and fucked around investments before they get corrupt and fucked around bank accounts. So if you're worried, we still recommend HYSAs and CDs.

Note: I personally have not changed anything about my investing and banking strategy since Trump took office. I'm still investing steadily according to my long-term goals, and I'm still keeping cash in bank accounts. But I am NOT a licensed financial advisor, just a well-meaning internet busybody who can't predict the future.

Here's some more information, my dove:

From HYSAs to CDs, Here's How to Level Up Your Financial Savings 

Wait... Did I Just Lose All My Money Investing in the Stock Market? 

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[janjanenrico]

Daewoo BV113/FDIC Dolphin Series Coach

CTTO: @compulsivewriter Inspired by: Wristwatch collector Front and Back Added, Made by Me.

[onlytiktoks]

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