FDIC's Capacity Tested as Calls for Increased Deposit Insurance Grow.

The Federal Deposit Insurance Corporation (FDIC) has the ability to borrow money from other parts of the government and access funds from the Federal Home Loan Banks to meet its obligations in the event of a bank failure. The FDIC has about $128 billion in its Deposit Insurance Fund and can borrow up to $100 billion from the US Treasury. The agency's standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. No depositor has lost any of their insured money because of a bank failure since FDIC insurance began. The FDIC's ability to satisfy its obligations to insured depositors is limited by the US government's ability to borrow.