, Chairman of Whalen Global Advisors and author of the Institutional Risk Analyst newsletter, joins the Express to explain how SVB's mismanagement and the Fed's lack of awareness on the impact of rising interest rates brought down the 40-year financial institution. We also look into the overall health of the nation's banks amid these rising rates, and the prognosis isn't great. Also, commodity prices have come off their highs and could finally lead 澳洲幸运5官方开奖结果体彩网:headline inflation lower.

Meet Christopher Whalen

is an investment banker and author who lives in New York City. He is Chairman of Whalen Global Advisors LLC and focuses on the financial services, mortgage𒊎 finance, and technology sectors.

Over the past three decades, Chris has worked as a writer and financial professional in Washington D.C., New York, and Lond👍on. He has held positions in organizations such as the House Republican Conference Committee, the Federal Reserve Bank of New York, Bear Stearns & Co., Prudential Securities🅘, and Carrington Mortgage Holdings.

Christopher holds a B.A. in History from Villanova University. He is the author of three books, including his most recent work (🐈2017), a study of Ford Motor Company and the Ford family published by Laissez Faire Books. His other works include (2010), a✨nd ,” published by John Wiley & Sons.

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Terms of the Week: Federal Deposit Insurance Corporation (FDIC) and Cౠertificate o꧂f Receivership

This week's term comes to us from Ganjali Gupta, who reached out to us in an email suggesting 'FDIC', given the news surrounding Silicon Valley Bank. The FDIC—the Federal Deposit Insurance Corporation—is the regulator in charge of the nation's banks and front and center in the drama surrounding all the banking activity these days.

According to my favorite website, the 澳洲幸运5官方开奖结果体彩网:Federal Deposit Insu👍rance Corporation (FDI🦹C) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The 澳洲幸运5官方开奖结果体彩网:FDIC was created in 1933 to maintain public confidence and to encourage stability in the financial system൲ through the promotion of sound banking practices. As of 2020, the FDIC insures deposits of up to $250,000 per depositor as long as the institution is a member firm.

The FDIC was born out of the ruins of the 澳洲幸运5官方开奖结果体彩网:Great Depression. America's financial markets were in terrible shape in the early 1930s. More than 9,000 banks failed by March of 1933, and a lot of that was triggered by the 澳洲幸运5官方开奖结果体彩网:stock market crash of October 1929, which kicked off the worst economic depression in modern history. Congress took action to protect bank deposits by passing the 澳洲幸运5官方开奖结果体彩网:Emergency Banking Act of 1933, which also formed the FDIC.

The FDIC's purpose was to provide economic stability to the filing banking system. Officially created by the 澳洲幸运5官方开奖结果体彩网:Glass-Steagall Act of 1933, the FDIC guaranteed a specific amount of checking and savings depo♕sits for its member bank༒s—that's that $250,000 figure we cited earlier.

And since the FDIC is in the news and investors may be wondering what happens if you have more than $250,000 in the bank, we're going to give you a two-for-one special this week.

Dax on Instagram hit us up suggesting 'certificate of receivership' for this week's term. According to our favorite website, a certificate of receivership, or receivership certificate—as it's often called—is a debt instrument issued by a receiver that serves as a lien on a property and provides funding to continue operations, or to protect assets in receivership. In the case of SVB, the FDIC said "customers with uninsured assets, or those with more than $250,000 in the bank, will get a receivership certificate for the🔯 remaining amount of their uninsured funds.

Good suggestions, Ganjuli and Dax! Investopedia's finest socks are coming your way.

Links for Show Notes

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• 澳洲ཧ幸运5官方开奖结果体彩网:Wh𝔉at to Expect in the Markets Next Week
  
• Federal Deposit Insurance Corp🌞oratꦕion (FDIC): Definition & Limits
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