Function, Purpose, and General Structure of Financial Institutions

Free CFP Exam lesson in Professional Conduct and Regulation. 13 min read, ~2,022 words.

FDIC insures bank deposits; SIPC covers brokerage firm failure; neither reimburses market losses. FDIC: $250,000 per depositor, per institution, per ownership category; multiple categories at one bank raise total coverage. SIPC: $500,000 per customer, with a max of $250,000 in cash. Credit unions use NCUA, not FDIC, with identical coverage...