Deposit Insurance Fund (DIF)

One of the more significant lessons learned from The Great Depression revolved around the need for restored confidence in the banking system, which crashed along with the stock market when there was a run on the banks for depositors’ withdrawals. Fear won. Greed lost.

Created as a part of the Glass-Steagall Act in 1933, the Federal Deposit Insurance Corp. (FDIC) guarantees all savings accounts up to $250,000. In order to fund the FDIC, all banks operating in the US contribute their respective insurance premiums in the the Deposit Insurance Fund (DIF), which is administered by the FDIC board.

Now you know at least one reason bank managers tell their staffs to just cooperate with bank robbers.