Word: depositer
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Dates: during 1970-1979
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...early 1960s, banks further began to concentrate on "liability management"-the concept of borrowing money to relend it at a higher rate. Citibank developed the negotiable certificate of deposit-a security that offers higher-than-usual interest to a corporation or individual investor willing to leave money in the bank for a fixed period, such as one year. If an investor wants his money back sooner, he can sell the CD to someone else. Formally, the money is a deposit; actually, it is a loan to the bank. Banks also began borrowing from the huge pool of Eurodollars held abroad...
More banks failed during 1975 than in any year since World War II-and hardly anyone noticed. The Federal Deposit Insurance Corp. paid out $310 million to depositors in the 13 small U.S. banks that closed their doors, and that pretty much was that. The smooth performance illustrated a fact of paramount importance in any discussion of banking troubles: since the FDIC was created in 1934, the calamitous run on a bank has become a dim memory, and the safety of money deposited in banks has been just short of absolute...
...very rare cases-for instance, when a community's only bank fails-the FDIC will set up a Deposit Insurance National Bank to provide services and will run it for as long as two years, or until investors can be persuaded to establish a private bank...
...FDlC's money is provided not by taxpayers but by the insured banks, which pay premiums equal to one-twelfth of 1 % of their deposits; a $3 billion emergency line from the Treasury has never been used. The deposit insurance fund stands at $6 billion. Over the 42 years of its existence, the FDIC has disbursed $1.6 billion to depositors in some 500 failed banks. All but $247 million has been recovered through sale of assets...
...against the radical grain; and there was much talk of decentralization. Fortunately this did not happen. Just as you do not get rid of the need for the British Museum reading room by multiplying local libraries, so the necessity for the Metropolitan remains: a place where a very large deposit of cultural evidence can be inspected and compared in depth at the best possible level of aesthetic quality. The role of such a collection is to defend us against one of the great American vices-provincialism in time. And so-floreat! · Rober Hughes