A payment made to an uninsured depositor after a bank or thrift failure. The amount of the advance dividend represents the FDIC’s conservative estimate of the ultimate value of the receivership. Cash dividends equivalent to the board-approved advance dividend percentage (of total outstanding deposit claims) are paid to uninsured depositors, thereby giving them an immediate return of a portion of their uninsured deposit. Sometimes when it is projected that all depositor claims will be paid in full an advance dividend will be provided to unsecured creditors.
links I came across
- https://www.fdic.gov/bank/historical/bank/ - shows the number of bank failures by year. The same chart also shows the total assets involved.
- https://www.fdic.gov/resources/deposit-insurance/financial-products-insured/ - has detailed information on how joint accounts are handled.
fdic_notes.txt · Last modified: 2023/03/10 23:22 by admin