Beginning in 1933,the Federal Deposit Insurance Corporation

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The Federal Deposit Insurance Corporation (FDIC) was created in 1933 to protect the assets of bank depositors up to a certain amount, initially set at $2,500. This protection helped restore public confidence in the banking system during the Great Depression. While the FDIC does regulate and supervise banks, its primary function is to insure deposits and prevent bank runs, not prevent banks from speculating or protect them from failing. The FDIC does not offer financial protection for stock investors.