![]() The SIPC protects user holdings in broker-dealers. A more detailed view of their expenditures in 2021 can be found on their annual report here. That makes a total of $1.9 billion in FDIC operating expenditures. Further, It spent $316 million to manage its deposit insurance fund, and lastly, $303 million was for so-called ‘corporate general and administrative expenditures.’ It spent $227 million on bank failure resolution and receivership management of these resolved funds. About $1.1 billion was spent on that program – thus, making up 58% of its spending in 2021. It also makes sure participating American commercial and savings banks comply with consumer protection laws. The program is concerned with the examination of banks to assess their operating conditions, management practices and policies, and compliance with applicable laws and regulations. The FDIC spends much of its budget on its Supervision and Consumer Protection program. If a bank becomes insolvent, the FDIC will preserve or liquidate its assets and begin to pay back customers. ![]() The FDIC protects deposits in banks up to certain limits. Would a similar organization work in DeFi? In the US, government-supported organizations protect most traditional finance users by providing a sort of insurance on their deposits.Īmong other things, these organizations protect funds in registered Institutions from being lost through insolvency or due to bank failures. ![]()
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