Is our money safe in banks?

[UpInArms]

41. Here is snopes

https://www.snopes.com/fact-check/project-2025-eliminating-fdic/

The FDIC — created by former President Franklin D. Roosevelt during the Great Depression as a way to restore Americans' trust in banking — is a U.S. government entity that insures up to $250,000 (per depositor, per insured bank, for each ownership category).

However, the more than 800-page Project 2025 blueprint document does not explicitly call for the elimination of the FDIC. Rather, it outlines a plan (on page 705) to merge the corporation with other federal financial institutions and to create new charters for financial firms that would "replace government regulation with competition and market discipline." The relevant section of the document reads as follows:

Merging Functions. The new Administration should establish a more streamlined bank and supervision by supporting legislation to merge the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Reserve's non-monetary supervisory and regulatory functions.

U.S. banking law remains stuck in the 1930s regarding which functions financial companies should perform. It was never a good idea either to restrict banks to taking deposits and making loans or to prevent investment banks from taking deposits. Doing so makes markets less stable. All financial intermediaries function by pooling the financial resources of those who want to save and funneling them to others that are willing and able to pay for additional funds. This underlying principle should guide U.S. financial laws.

Policymakers should create new charters for financial firms that eliminate activity restrictions and reduce regulations in return for straightforward higher equity or risk-retention standards. Ultimately, these charters would replace government regulation with competition and market discipline, thereby lowering the risk of future financial crises and improving the ability of individuals to create wealth.