Phil Cannella – Phillip Cannella News: Phil Cannella has examined the protections that the banking system provides as compared to the insurance industry. One very interesting aspect of the banking system is the FDIC. As Phil Cannella explains, we’ve all seen the “FDIC-insured” signs in banks.
Phil Cannella explains exactly what this means: “When you go to your bank, you probably see the FDIC-insured signs on the counters or plaques on the wall to ease your concerns, informing you that your funds are safe in their hands up to $250,000. Who runs the FDIC and why do they have so much money? Are they part of the banking industry? The securities industry? The federal government?
No, it’s the Federal Deposit Insurance Corporation – an insurance institution. The FDIC is regulated by the federal government, but it is this institution that insures all bank accounts in the country. Why do you suppose the banking industry depends on this network of insurance companies to insure their accounts?”
As Phil Cannella points out, this is another strength of the insurance industry. It is for good reason that Phil Cannella chose insurance products as the key component of his crash proof retirement system.