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Why This Sign Is in Front of Banks | WSJ

The Federal Deposit Insurance Corporation was created from the Banking Act of 1933 to prevent the bank runs seen during the Great Depression. With Silicon Valley and Signature Banks, the FDIC is doing what it was designed to do—cover insured deposits. But it’s taken its promise even further, saying it will protect even the uninsured. Here’s how the FDIC works. 0:00 What is a bank run? 1:38 How FDIC insurance works 2:53 Why SVB and Signature Bank’s collapse have been uniquely challenging News Explainers Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day's biggest stories into bite-size pieces to help you make sense of the news. #FDIC #SVB #WSJ