Because of the recent financial news and bank failures, most people have been researching if their money is safe. So, you probably already know what the FDIC does. Yes, it is the insurance that your bank has to guarantee that you won't lose your money stored at the bank, as long as you have $100,000 or less in your account.
But, what happens if the FDIC starts to struggle? Who is the back-up? You, that is, if you are a tax payer. According to The Associated Press, "Banks are not the only ones struggling in the growing financial crisis. The fund established to insure their deposits is also feeling the pinch, and the taxpayer may be the lender of last resort.
The Federal Deposit Insurance Corp., whose insurance fund has slipped below the minimum target level set by Congress, could be forced to tap tax dollars through a Treasury Department loan if Washington Mutual Inc., the nation's largest thrift, or another struggling rival fails, economists and industry analysts said Tuesday."