Getting to Know the FDIC

You may have heard that the banking industry isn't looking so hot right now. If your bank goes under, just how much do you stand to lose personally, though? You probably know that the Federal Deposit Insurance Corporation protects your money, but how much and through what avenues? Let's take a look at the FDIC:

Don't panic. While we may sneer at the major missteps our contemporary bankers have been making, things were much, much worse in the 19th century. The whole notion of banking as we know it is based upon what's known as a fractional reserve system. This means that when you deposit your cash at a bank, the bank doesn't simply stick it in a safe until you come back to ask for it. Instead, they take some of your dough and buy securities and make loans. The bank holds only a fraction of its deposits in reserve, and the economy grows because banks can effectively use the unreserved fraction to "create" new money. It's a supremely effective system. That is, unless everyone tries to get their cash out at once, in which case the bank wouldn't have enough money to pay all of its depositors.

bank-run.jpgThese scenarios popped up from time to time throughout the 19th century. Depositors would start to worry that their bank might become insolvent, so they'd go pull out their money. As more and more people did this, the bank actually got closer and closer to insolvency, so there was an ever-stronger incentive for all depositors to get their cash back, which would effectively crash the bank.

Problems like these persisted into the 20th century, and like a lot of financial woes, peaked in 1933 when over 4,000 banks collapsed. With such systemic bank failure, people didn't want to put their money in banks, and the government needed to intervene somehow to restore faith. Congress did so by passing the Glass-Steagall Act of 1933, which created the FDIC to insure individual deposits up to $10,000. The FDIC would fund such guarantees by collecting premiums from banks. Although bankers weren't too hot on the idea of bailing each other out of hot water, the FDIC soon counted most of the country's banks among its members.

So what's the limit now? The FDIC's ceiling for insuring accounts at member institutions has gradually grown from the original $10,000. As of 1980, each account was taken care of up to $100,000, and following our latest rocky economic times the limit's been temporarily bumped up to $250,000 per account.

What exactly is insured? As of right now, you're covered for up to $250,000 on your deposit accounts at member banks. This means that your checking account, savings account, money market deposit accounts, and certificates of deposit are all safe up to $250,000 total. You should know that it's cumulative, though, not per account; if you've got $200,000 in a checking account and $100,000 in a savings account, only $250,000 of your cash is totally insured. If you've got accounts at separate banks, each one is insured for up to $250,000; if you've got $250,000 in a checking account at Chase and $250,000 in a checking account at Citi, both are completely covered. (You might want to spend some of that dough to hire someone who can help you manage your money a little better, though; that's a lot of cash to have in checking accounts.)

On top of that, if you have deposits in various categories of accounts, they can be insured separately, so things like your IRAs are also taken care of up to $250,000.

So what isn't insured? Everything else. Your stocks, bonds, mutual funds, annuities, Treasury securities, and life insurance policies aren't covered, even if you bought them from an FDIC-insured bank.

Also, the stuff in your safe deposit box isn't covered since it's not a "deposit" in the standard sense of the word. Usually when a bank goes under another swoops in to take it over, though, and then the acquiring bank will hang onto your stuff for you. In the event that another bank doesn't take acquired the failed bank, the FDIC will send you instructions for how to clean out your box. The federal government really has little interest in absconding with the passport you left there for safekeeping.

Can I outsmart the FDIC's limits? At a single bank? No. You can't circumvent the caps by including your middle initial in your banking records or changing the "and" to an "or" in the joint account you share with your spouse. If you need coverage above and beyond the current $250,000 cap in any category of account, you'll have to open up an account at a separate bank.

indymacfront.jpgWhat happens to whatever deposits I had over the cap? Don't worry; you probably won't lose all of it. The FDIC continues to insure beyond the caps; it's just not 100% dollar-for-dollar coverage. For instance, when IndyMac Bank failed earlier this summer, roughly 5% of its $19 billion in deposits was over the limit. The FDIC paid depositors for 50% of their uninsured funds.

However, the FDIC doesn't work just like a regular insurance company; it actively tries to get another bank to take over failed institutions. In these cases, the purchasing institution takes over the failed banks' liabilities (like your deposits) and also gets some of the bank's assets (like outstanding loans). In this case, the depositors can end up getting more of their uninsured cash back. A story that ran in the San Francisco Chronicle last weekend said that in recent years depositors in failed banks have gotten around 72% of their uninsured funds back. Sure, losing that 28% hurts, but as anyone who had money in a failed pre-FDIC bank could have told you, it's a lot better than taking a 100% hit.

10 Surprising Facts About Band of Brothers

In 1998, HBO—then a network that had not yet completely broken through with hits like The Sopranos and Sex and the Citydecided to take on its biggest project ever: a massive 10-hour World War II miniseries executive produced by Steven Spielberg and Tom Hanks. Three years, more than $100 million, and thousands of work hours later, Band of Brothers was brought to the world. The true story of a single paratrooper company making their way through the last year of the war in Europe, Band of Brothers dwarfed other TV dramas of its era with its budget, its cast, its effects, and its extraordinary attention to period detail. The result was one of the most acclaimed World War II dramas ever filmed.

So, from the sheer scale of the production to the cast’s boot camp to some actors you may have forgotten about, here are 10 things you might not have known about Band of Brothers.


When Band of Brothers began its journey to the screen in the late 1990s, one of HBO’s chief concerns in agreeing to produce the series was its budget. Today, in the age of Game of Thrones, it seems natural for the network to foot the bill for such an epic, but at the time the amount of money called for was almost unheard of. When discussions first began, it became clear that the miniseries would cost at least $125 million to produce, which meant $12 million per episode. That’s a figure that dwarfed even the most prestigious and popular TV dramas at the time, and it didn’t even factor in the massive marketing budget (at least $15 million) the network was considering to promote the event. So, what convinced HBO to put up the money? A number of factors, but having Hanks and Spielberg on board certainly helped.

''I'm not saying they didn't bat an eye,'' Hanks told The New York Times in 2001. ''Oh, they did bat an eye. But the reality is this was expensive. You had to have deep pockets. And HBO has deep pockets."


The promotional campaign for Band of Brothers was almost as massive as its budget, with HBO attempting to draw the curiosity of as many non-subscribers as possible. One of the ways they achieved this was by forming the network's first ever partnership with another company to launch a series of commercials. That company was Jeep, which was celebrating the 60th anniversary of its signature vehicle at the time. The classic military Jeep figures prominently in Band of Brothers—it appears more than 1000 times throughout the series—so it was a natural fit.

Together, HBO and Jeep shot a series of six commercials tying into the series, filmed on Utah Beach in Normandy, France (not a place commercials are usually allowed to shoot). The spots aired on broadcast television, allowing HBO a rare chance (at the time) to get its products before an audience that large.


Though Band of Brothers was largely well-received by audiences both in the United States and abroad, it did cause some controversy in the United Kingdom before it even aired there. According to The Guardian, the furor was stirred up by The Daily Mail, which published a condemnation of the miniseries for its lack of British soldiers. The series, of course, is meant to follow a single company of American troops as they navigate the last year of the war in Europe, but that didn’t stop The Daily Mail from decrying the show’s narrow focus. The publication called forward various British veterans who declared Band of Brothers "an absolute disgrace and an insult to the millions of brave Britons who helped win the war,” the implication being that the series essentially depicted only Americans as winning the war in Europe. The controversy, while noteworthy, was short-lived.


Band of Brothers, a 10-hour miniseries set entirely during World War II, would be a massive undertaking even now, but it was particularly gargantuan when it was produced. Some figures that prove just how big it was: According to the documentary The Making of Band of Brothers, the production required 2000 American and German military uniforms; 1200 vintage costumes (that’s not counting the newly made ones); more than 10,000 extras; more than 14,000 rounds of ammunition a day; and 500 speaking roles. The special effects alone were so massive that, by the time the third episode was completed, the production had already used more pyrotechnics than Saving Private Ryan, which is particularly impressive given that much of the first episode is taken up by boot camp sequences.


A still from 'Band of Brothers' (2001)

The story of Band of Brothers takes the men of Easy Company across half the European continent, through several different countries and even seasons. Despite the vivid depiction of all of these varied places on the journey, the miniseries (aside from certain location shoots) was largely filmed in one place. Thanks to a large tax break from the UK government, the production was headquartered at the Hatfield Aerodrome, an old British aerospace factory that had been converted into a massive, 1100-acre backlot. The various hangars from the factory were used to house the costumes, props, weapons, tanks, and other equipment used to shoot the series, and some hangars even housed various sets.


Because Band of Brothers was mostly shot on the Hatfield backlot, the crew had to make certain accommodations to portray much of Europe in a small space. One key factor was the 12-acre village set constructed on the lot. A set that size is a massive undertaking anyway, but to depict the various places Easy Company visits, the village had to be constantly redressed to show England, Holland, Belgium and other locations. In all, the village ended up playing 11 different towns throughout the miniseries. 


One of the most harrowing segments of Band of Brothers takes place in the sixth episode, “Bastogne.” Caught in the middle of the Battle of the Bulge and low on supplies, Easy Company faces its toughest challenge yet as they try to hold off a massive German force even as they’re starving and freezing to death. It’s a powerful episode, but most of the time the actors were faking the hardship. The sequences in which the company is huddled down in foxholes, scrounging for whatever food and medicine they can get, were largely filmed on a massive indoor set constructed in one of the hangars at Hatfield. The production used real trees and numerous fiberglass trees (which could be broken apart to simulate German shells) to create the forest, and paper mixed with various polymers to create artificial snow. It’s estimated that more than a third of a million pounds of paper were used to make snow throughout the sequence, and it took four weeks to completely cover the set.

“It’s the biggest amount ever used on one set, for anything,” snow effects supervisor David Crownshaw said. “It should be in the Guinness Book of Records.”


Every major character in Band of Brothers wields at least one firearm throughout the entire production, and many of the men of Easy Company are never without their trusty M1 Garand rifles. The World War II-era weapons were key to the production, and Hanks and Spielberg insisted on authenticity, so they went to an arms dealer and picked up 700 authentic period weapons for the production. Numerous other guns (including pistols largely kept in holsters) were made of rubber, but very often when you see the men of Easy Company firing their rifles at the enemy, they were firing the real thing.


Because Band of Brothers includes hundreds of speaking roles, including dozens of American soldiers, the production had to recruit a virtual army of young actors, many of whom were relatively unknown at the time. If you go back and watch the series now, you’ll see several young faces that are now recognizable as major movie stars. Among the now-big names: James McAvoy, Tom Hardy, Simon Pegg, Michael Fassbender, Colin Hanks, Dominic Cooper, and Jimmy Fallon.


To develop a better understanding of the military culture their characters were involved in, and to get them in the right physical and mental shape for the miniseries, the cast portraying Easy Company embarked on an intensive 10-day boot camp before shooting, training 18 hours a day under the watchful eye of Captain Dale Dye.

Dye, a former Marine and Vietnam veteran who came to Hollywood after he left the military to become a technical advisor, served as the senior military advisor on the production and also portrayed Colonel Robert Sink in the series. Dye led the boot camp and even helped direct key battle sequences in an effort to get the cast as close to real soldiers as possible. According to the men who portrayed Easy Company, the experience brought them closer together, and made them more like a real unit.

“You hit walls in boot camp," Scott Grimes, who played Sergeant Malarkey, said. "You hit these personal mental, physical walls that you have to go over, basically. There were guys the first night at boot camp that cried themselves to sleep that I was there for, and they were there for me.”

In addition to boot camp, the Easy Company cast also undertook a version of paratrooper training to ensure authenticity. Among the challenges: jumping out of a mock-up plane fuselage, while strapped to a harness simulating a parachute, from a height of 40 feet.

After a Year in Space, Astronaut Scott Kelly Is No Longer Genetically Identical to His Twin Brother

After spending 342 consecutive days onboard the International Space Station from 2015 to 2016, astronaut Scott Kelly now holds the record for longest single space mission by an American. But his "One-Year" study with NASA was about more than breaking records: Its purpose was to show how prolonged time in orbit would effect Kelly's genetic makeup compared to that of his identical twin brother on Earth. Now, following recent evaluations of the two men, it appears that Scott Kelly and his brother Mark are no longer genetically identical, reports.

NASA announced the most recent findings from its Twins Study ahead of a more comprehensive paper combining the work of multiple teams of researchers that is slated for later in 2018. Like his brother Scott, Mark is also an astronaut, making the pair the only twin astronauts in history. So when NASA was looking for a way to study the long-term effects of space life, the siblings were a perfect fit.

As Scott was sending tweets and blowing bubbles on the ISS, Mark stayed on Earth to serve as the control. Biological samples taken from both subjects before, during, and after the space flight showed some dramatic differences. According to an investigation conducted by Susan Bailey of Colorado State University, Scott's telomeres, the protective "cap" at the ends of chromosomes that shorten as we age, got longer in space. The telomeres began shrinking back to preflight levels, however, a few days after Scott's return to Earth. Scott was subjected to regular exercise and a restricted diet aboard the ISS, so the new lifestyle may explain the sudden telomere boost.

Other genetic differences stuck around even months after landing. "Although 93 percent of genes’ expression returned to normal post-flight, a subset of several hundred 'space genes' were still disrupted after return to Earth," acccording to a NASA press release. About 7 percent of Scott's genes may show longer-term changes, included the genes associated with DNA repair, immune health, bone formation, hypoxia (an oxygen deficiency in the tissues) and hypercapnia (excessive carbon dioxide in the bloodstream).

A long list of factors, like radiation, caloric restriction, and zero gravity, may have contributed to the results. NASA plans to use these findings to develop countermeasures against these effects, which will be essential if the agency plans to send humans to Mars, a journey that could take three times as long as Scott Kelly's ISS mission.



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