The FDIC has been around since its creation in 1933, as a part of the New Deal.  It was created as a response to the thousand of bank foreclosures during the depression.  It provided a safety net so those who have money tied up in a bank when it closed get their money back. One of the effects that occured rather immediately from the establishment of the FDIC was the restored confidence in banks.  Its ultimate goal was prevent depositors from losses of money and causing another depression.