Wednesday, May 29, 2013

Deposit Insurance Not Legally Backed By Full Faith And Credit Of US

Posted by Milton Recht:

From The Wall Street Journal, "Deposits Guaranteed Up to $250,000—Maybe: What does it mean to be 'Backed by the full faith and credit' of the U.S.?" by Alex Pollock:
Congress apparently has never enacted a provision in a law simply stating that insured deposits are guaranteed by the full faith and credit of the government—at least I have diligently searched for it, including asking the FDIC for such a statutory citation, without success.
See my August 28, 2009, post "FDIC Insurance Fund Is Not Backed By US Full Faith And Credit"

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