Federal Data Insurance Corporation

Wednesday, June 29, 2016

Every bank account in the United States is insured against loss to at least $250,000 by the Federal Deposit Insurance Corporation, an agency created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The FDIC is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system. The FDIC carries out its mission through three major programs: insurance, supervision, and receivership management. Specifically, it does so by:

  • insuring deposits;
  • examining and supervising financial institutions for safety and soundness and consumer protection;
  • making large and complex financial institutions resolvable; and
  • managing receiverships.

The FDIC receives no Congressional appropriations—it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. The FDIC insures approximately $9 trillion of deposits in U.S. banks and thrifts—deposits in virtually every bank and thrift in the country.

We could replace each instance of "deposit" in the description of the FDIC above with "data" and get a potentially viable mechanism for damage mitigation for individual citizens who consent to share their health data by banking it with any regulated data banking institution.