by Dana Henricks, Florence
Remember that scene in the Christmas classic “It’s a Wonderful Life”where everyone in Bedford Falls freaks out from rumors of a bank run and rushes to George Bailey’s Building and Loan bank to take out all their money before they lose everything? Back in the Great Depression, bank failures were not just in the movies. Thousands of banks failed, and millions of Americans lost their life savings.
After the Great Depression, Congress passed the Glass-Steagal Act, which created the Federal Deposit Insurance Corporation, or FDIC. You’ve probably noticed those little FDIC plaques when you go to your bank. If you look closely, you will see that they read something like: “Deposits insured up to $250,000.”
How does it work? Banks are required by law to pay insurance premiums to FDIC. I’ll say it again: BANKS pay this insurance, not you. That way, if the bank does go belly up, you still get your money from the insurance banks had to pay to FDIC, up to $250,000.
Well, guess what? Now President Trump and Elon Musk want to get rid of FDIC (along with the whole Consumer Finance Protection Agency). So if your bank fails, you will lose all your money. But don’t worry about your poor bank! They’ll be just fine because we taxpayers will still have to bail them out, just like we had to bail them out during the Great Recession of 2009.
Remember in 2009, how so many Americans ended up losing their homes because they owed more money on them than their houses were actually worth? Well, just imagine how many more Americans will lose their homes if they lose all the money in their checking and savings and retirement accounts, which will happen if banks fail and there is no FDIC anymore.
Please call Senator Steve Daines (202-224-2651); Senator Tim Sheehy (202-224-2644); Representative Ryan Zinke (202-225-5628); Governor Greg Gianforte (406-444-3111) and tell them you are opposed to Trump and Musk getting rid of FDIC and the Consumer Finance Protection Agency.