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Federal Deposit Insurance Corporation: Difference between revisions
Federal Deposit Insurance Corporation (view source)
Revision as of 00:29, 8 February 2025
, 8 FebruaryText replacement - "Arlington County, Virginia" to "Arlington County, Virginia"
m (Text replacement - "LII" to "Legal Information Institute") |
m (Text replacement - "Arlington County, Virginia" to "Arlington County, Virginia") |
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==Resolution of insolvent banks== | ==Resolution of insolvent banks== | ||
[[File:Federal Deposit Insurance Corporation (FDIC) (52367658071).jpg|thumb|The FDIC's satellite campus in | [[File:Federal Deposit Insurance Corporation (FDIC) (52367658071).jpg|thumb|The FDIC's satellite campus in Arlington County, Virginia, is home to many administrative and support functions, though the most senior officials work at the main building in Washington]] | ||
Upon a determination that a bank is insolvent, its chartering authority—either a state banking department or the U.S. Office of the Comptroller of the Currency—closes it and appoints the FDIC as receiver. In its role as a receiver the FDIC is tasked with protecting the depositors and maximizing the recoveries for the creditors of the failed institution. The FDIC as receiver is functionally and legally separate from the FDIC acting in its corporate role as deposit insurer. Courts have long recognized these dual and separate capacities as having distinct rights, duties and obligations. | Upon a determination that a bank is insolvent, its chartering authority—either a state banking department or the U.S. Office of the Comptroller of the Currency—closes it and appoints the FDIC as receiver. In its role as a receiver the FDIC is tasked with protecting the depositors and maximizing the recoveries for the creditors of the failed institution. The FDIC as receiver is functionally and legally separate from the FDIC acting in its corporate role as deposit insurer. Courts have long recognized these dual and separate capacities as having distinct rights, duties and obligations. | ||