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All You Need To Know About Medicare Fraud

All You Need To Know About Medicare Fraud

What is Medicare Fraud?

Medicare Fraud is defined as the act of knowingly, purposefully, and
deliberately misleading the Medicare claims office with the intent to swindle
or manipulate finances and funds disbursed as a result of an ailment;
fraudulent acts involving Medicare Fraud are typically
classified as involving misleading, deceitful, fake, and spurious measures
undertakenby an individual; such activity is recognized as the attempt to
garner personal profit or gain as result of fraudulent and deceitful
presentation of documentation and reporting assumed to be truthful and
accurate.

The submission of fraudulent Medicare insurance claims in order to
gain monies or funds is considered to be an illegal and an unethical criminal
activity.

Legal Jurisdiction of Medicare Fraud

Due to the fact the
provision of Medicare is a program sponsored by the Federal Government of the
United States, the applicable legal jurisdiction may span a single
jurisdiction. While Medicare Fraud is considered to be a criminal act
punishable to the fullest extent of the law, the involvement of the Federal
Government provides for an even heightened legal jurisdiction; this may result
in an indictment involving Medicare Fraud to be tried within the realm of both
Criminal Law, as well as Administrative Law:

The realm of Administrative Law  – with regard to Medicare Fraud –  is the legal specialty regulating the vast
expanse of laws, acts, ordinances, and legislation with regard to any and all
interactions in which the Federal Government of the United States engages its
citizens

The prosecution of Medicare Fraud within the scope of
Administrative Law, applicable charges can include the fraud,
misrepresentation, falsification of documents, forgery, and larceny – all
resulting from the unlawful duplication of documentation or illegal officiating
of government-mandated exchanges


Types of Medicare Fraud

Medicare Fraudcan be either exaggerated or fabricated in its respective
nature; the intent to defraud Federal Medicare facilities typically retains
both implicit and purposeful measures whose violation of the law exists in
concert with a violation of implied trust – the following are the 3 primary
examples of Medicare Fraud:

Phantom Billing

This type of Medicare Fraud involves the
fallacious and fraudulent reporting of procedures and medical activity
allegedly performed with regard to a Medicare claimed that was portrayed to be
legitimate; whether or not the procedures reported took place is immaterial –
falsifying any official and authorized reporting with regard to Medicare claims
is considered to be an example of Medicare Fraud in its fullest degree.

Deceptive Billing

In contrast to Phantom Billing, Medicare Fraud in the form of Deceptive Billing rarely
involves a procedure taking place; conversely, a patient involved in this
particular type of Medicare Fraud will typically sell – or auction – their
respective Medicare claim number in order to initially validate claims.
Subsequent to the initial claims, falsified and fraudulent additions to the
list of treatments are included with regard to the standard procedure of a
respective – albeit fraudulent – ailment

Up-coding
and Unbundling

This type of Medicare Fraud typically enacts the usage of codes that
exist in conjunction with the billing of expensive procedures. Upon the
presentation falsified Medicare claims through the usage of unbundled codes, a
Medicare claims office may be swindled into the provision of funds needed for
an expensive – albeit fraudulent – Medicare claim

Understanding Microcap Fraud

Understanding Microcap Fraud

What is Microcap Fraud?

Microcap Fraud is a type of securities fraud that involves investment activity and methodology rooted within stocks and investments that reside within the lower tier of the Market Capitalization classification. Microcap Fraud consists of the utilization of these types of investment options in order to commit fraudulent and criminal activity, which typically results in financial loss on the part of participatory investors. However, prior to more-fully understanding the concept of Microcap Fraud, the explication of applicable terminology surrounding this process is crucial.

What are Microcaps?

The term ‘Microcap Fraud’ is considered to be a colloquialism that refers to a shortened version of the word ‘Capitalization’ within Market Capitalization. The lower classification tiers of Market Capitalization are classified as companies – or investments – whose total market value does not exceed $50 million; as a result, these stocks are typically more inexpensive than stock options that exceed the classification of a Microcap.

In tandem to the typical price range for these Microcap stocks, the moniker ‘Penny Stocks’ has often been associated with Microcap Fraud; this moniker substantiates the decreased pricing with regard to a classification that the mass-purchase of these stocks is more widely-accessible than its larger ‘capped’ counterparts.

The Dangers of Microcaps

Due to the fact that microcaps – or penny stocks – are readily purchasable at decreased prices allows for the prospect of a single buy or entity gaining the opportunity to regulate the behavior of a particular microcap; the mismanagement of microcaps is classified as Microcap Fraud. Microcap Fraud can take place in a variety of methods:

Deregulation

This crime is particularly prevalent within cases in which the Securities and Exchanges Committee (SEC) has allowed for a microcap’s respective deregulation; as a result of this deregulation, the microcap company will be able to maintain agency over the commercial exchange of its stocks:

While this may be a productive and attractive feature for a company, there also exist a wide variety of criminal ramifications that can take place within the realm of Microcap Fraud; this can include the unfair manipulation of the stock resulting in the misrepresentation of its respective earnings.

Pump and Dump

A ‘Pump and Dump’ investment strategy is considered to be one of the most unethical and unlawful investment activities within the realm of Microcap Fraud; due the accessibility of the prospect to buy an individual microcap in large quantities, large-scale buying, selling, and exchange can allow for a single entity to control the behavior of a single stock without regard for other investors:

The ‘Pump’ aspect of this methodology typically involves an individual or entity amassing a large quantity of these microcaps – or penny stocks; individuals committing this nature of Microcap Fraud with ‘Pump’ money into the investment as they purchase a large quantity of shares.

The ‘Dump’ aspect of the process of this type of Microcap Fraud typically occurs as the multitude of microcaps are sold off in bulk; the mass-purchase of the particular Microcap projects the illusion that the stock underwent an increase in value – as the individual ‘Dumps’ that particular Microcap, the value of the stock declines just as quickly as it once rose.

Ponzi Scheme Explained

Ponzi Scheme Explained

What is a Ponzi Scheme?


Ponzi Schemeis a fraudulent operations in which investment capital is unlawfully distributed in a deceptive manner as a means to project the illusion of financial gains resulting from investment endeavors; typically, the investment capital of newer clients will be proportioned to existing clients with the hopes of instilling confidence in the operator’s investment acumen – the newer client’s will be deceived into believing that their investment capital was invested and subsequently lost as a result of market activity:


In reality, the money that was given in good faith – as an investment – was never invested at all; in contrast, the investment capital that was given was immediately funneled into the accounts of individuals with larger investment portfolios – this particular action provides a fallacious illustration of market gains as a result of investments.


Bernard Madoff, who was indicted in 2008, is considered to be responsible for the largest Ponzi Scheme to have taken place within the history of the United States.


The History of Ponzi Schemes


The first Ponzi Scheme was recorded as taking place in 1903 by an Italian immigrant named Charles Ponzi. The eponymously-names Ponzi Scheme consisted of Ponzi soliciting investors to provide him with money to invest within the replay coupon industry. The initial investors solicited by Ponzi granted him money towards this fraudulent endeavor; however, that investment capital was misappropriated by Ponzi himself.


As Ponzi recruited subsequent investors, he funneled the new investment capital towards the preexisting investors – the final stages of the Ponzi Scheme occurred as Ponzi utilized newer investment capital to substantiate returns to the original investors. As this illegal apportionment of funds took place, Ponzi amassed a large amount of wealth as his investors suffered financial losses due to this fraudulent activity.


The Ponzi Scheme Process


By definition, a Ponzi Scheme cannot – and will not – be able to endure a prolonged period of time; eventually, the funding for a Ponzi Scheme, which is reliant on new recruitment of investment capital, must eventually collapse.


However, individuals operating a Ponzi Scheme typically will operate a Ponzi Scheme with the intent of claiming the dissipation of their respective endeavor; the originator of a Ponzi Scheme will misrepresent this dissolution as a result of financial losses sustained by the investment market – in truth, the facilitator of a Ponzi Scheme will have embezzled a bulk of this capital masked by false claims of financial loss:


The facilitator of the Ponzi Scheme will seek to recruit investors with regard to a legitimate investment proposal; typically, this facilitator will attempt to solicit individuals with large sums available for investment prospects – the facilitator will accumulate a large sum of money through the embezzlement of this capital.


Once an amount of investment capital is attained by the facilitator of the Ponzi Scheme, that facilitator may continue to solicit individuals with smaller budgets for investments; the facilitator will use this capital to repay the initial investors – this swift repayment will be used to instill confidence the investment acumen of the facilitator.


A loss of funds will be reported back to the secondary investors, while the primary investors will continue to provide investment capital with hopes of earning more return; the facilitator will continue this process until funding is depleted.

All About Worldcom

All About Worldcom

What is Worldcom?
Worldcom was a telecommunications company that underwent a merger with fellow telecommunications company MCI in 1997; subsequent to the merger of these 2 giants within the telecommunications industry, the conglomerate company was renamed ‘MCI Worldcom’.
In 1999, the Sprint Telecommunications Company had planned to merge with the MCI Worldcom Company, yet in government regulation prohibited this merger from taking place due to presumable violations of anti-trust statutes.However, upon mention of Worldcom, historians and economists alike agree that public focus is seldom drawn to the commercial development of this conglomerate in lieu of the accounting scandal in which it was involved in 2002; the Worldcom Company name may tend to draw more focus to the massive financial loss resulting from the presumed unraveling of the company due to the fraudulent operation of the company itself.
What is the Worldcom Accounting Scandal?
The Worldcom accounting scandal was a financial scandal that involved the MCI Worldcom telecommunications company. Although the investigative reports provided by the Securities and Exchange Commission – as well as those belonging to private auditors who undertook additional investigation – state that the Worldcom scandal began in the year 2000, there currently exists no specific date. However, these investigative reports successfully named and classified the nature of the accounting scandal, as well as succeeded with regard to its respective criminal indictments:
Worldcom Finances and Investments
Bernard Ebbers was a Canadian Entrepreneur who not only gained notoriety for the founding of the Worldcom Company, but also acted as the company’s Chief Operations Officer (CEO) both prior to – and following – its merger with MCI, and subsequently Sprint. Following the merger, Ebbers earned a large amount of capital in addition to a vast amount of company stock; the merger resulted in the disbursement of stocks and assets resulting in Bernard Ebbers remaining a primary shareholder and CEO.
Insider Loans and Lending
Subsequent to the decline of the MCI Worldcom stock with regard to the commercial market, Bernard Ebbers had begun to lose a vast amount of capital; as a result, he found himself to be unable to provide sufficient maintenance to other investments that he had undertaken. Ebbers approached the board of MCI  Worldcom and requested a loan of $400 million in order to provide his with the financial relief necessary to upkeep his peripheral expenses and investments; the executive board agreed to provide 
Ebbers with a loan in order to sway him from selling the entirety of his shares – the board feared that the selling of Ebbers’ shares would not only promote a sense of panic with regard to other investors in MCI Worldcom, but would also present an opportunity for a hostile takeover.
The MCI Worldcom Accounting Scandal
Subsequent to the release of the loan to Bernard Ebbers, the executive board witnessed the gradual insolubility of the company; both the $400 million given to Ebbers existing in tandem with the declining profits sustained by MCI Worldcom placed the company on the brink of bankruptcy. In lieu of informing MCI Worldcom investors of the true state of the company, a number of executives purposefully misrepresented the company’s earnings and spending; this accounting fraud purportedly resulted in the fraudulent reporting of upwards of $11 billion that the company did not have.

Conclusion
MCI Worldcom filed for Chapter 11 bankruptcy in 2004 and was acquired by the Verizon telecommunications company; Bernard Ebbers was both indicted – and subsequently sentenced to a 25 year prison sentence.

International Finance Corporation Role

International Finance Corporation RoleWhat is the International Finance Corporation?

The International Finance Corporation is a United Nations agency that directly invests in companies and guarantees loans to private investors in the global marketplace. The International Finance Corporation is affiliated with the World Bank and was created to promote a sustainable private sector through the investment in developing economies as a means to reduce poverty and improve the lives of those residing in struggling nations.
The funds delivered to such nations are typically used to benefit the nation as a whole. Through the delivery of funds, these developing economies can invest and subsequently supply their people with improved public services such as paved roads, public transportation, the establishment of business centers, and an overall improvement of the nation’s infrastructure.
The International Finance Corporation is headquartered in Washington D.C. and shares the primary responsibilities and objectives of all World Bank Group Institutions—to improve the overall quality of the lives of people in developing countries.
To help those in struggling nations, the International Finance Corporation provides micro loans as well as other forms of financing to developing countries. The International Finance Corporation was established in 1956, and stands alone as the world’s largest multilateral source of equity financing for private sector projects in developing economies worldwide.

Role of the International Finance Corporation

The International Finance Corporation aims to promote sustainable development of the private sector in developing nations through the various means:
o    The International Finance Corporation will finance private sector projects and an assortment of business ventures in the developing world.
o    The International Finance Corporation will help private companies in developing nations in regards to mobilizing and gaining access to financing streams in the international financial markets.
o    The International Finance Corporation will provide technical assistance and professional advice to various businesses and government agencies throughout the world. 
Ownership and Management Structure of the International Finance Corporation:
The International Finance Corporation is comprised of 182 member countries who band together to collectively distribute the company’s unique policies. To gain membership, a country must first acquire membership to the International Bank for Reconstruction and Development. The International Finance Corporation shares capital, which is delivered by its member countries. The voting privileges of the member countries are proportional to the number of shares held—tied-into the amount invested.
The International Finance Corporation is comprised of a Board of Governors who delegates the majority of their powers to the IFC’s board of Directors. The IFC is also managed by the company’s CEO, President and Executive Vice President.
International Finance Corporation’s funding:
The International Finance Corporation’s equity and investment policy is funded out of the capital paid-into the corporation. Additionally, funds are obtained through the retained earnings, which is primarily comprised of the corporation’s net worth. The IFC possesses a strong shareholder support, triple-A bond ratings, as well as a substantial capital base, which allows the company to raise funds in all international markets.

What You Didn’t Know About Finance Management

What You Didn't Know About Finance Management

Finance Management Defined:

 

Financial management is a subject in finance that institutes and elucidates on the planning for an individual or business enterprise for long-term purposes. Financial management can be delivered as a course load in an educational environment or may be delivered by a financial professional, such as a financial planner or adviser.
 
 
Financial management aims to ensure a positive cash flow for the individual consumer or investor through the institution of efficient investment, habitual savings, and frugal spending. The practice includes the administration and re-evaluation of financial assets as they pertain to an effective long-term financial plan. Additionally, financial management covers and elucidates upon the process of identifying and subsequently managing the potential risks associated with leverage, investment and spending beyond one’s means.
 
 
The primary concern or focus of financial management deals with the assessment—as oppose to the techniques—of financial quantification. If hired, a financial manager will evaluate the available data (financial plans, tax statements, income statements and expenditures) to judge the performance of an individual’s financial statements or a business model.
 
 
As a result of this process and concern, financial management aims to maximize efficiency through the administration of a thorough cost/benefit analysis. Financial management thus, will investigate and evaluate the expenditures of a consumer or business enterprise and compare those costs to their respective investments and income. Furthermore, the field of financial management will delve deeper into an enterprise’s or individual’s financial state by evaluating their respective long-term goals and the means utilized to achieve such goals.
 
 
Various Levels of Financial Management
 
 
In a broad sense, the process or study of financial management takes place at two distinct levels: the individual interpretation and the business application.
 
 
At the individual level, the process of financial management involves the creation of a financial plan in accordance with the resources and assets of the respective individual. In the most simplistic of senses, those individuals who earn high incomes or who hold a surplus of cash must invest their money wisely to negate the impact of taxation and inflation. In this situation those individuals must also be wise in how they spend their discretionary income; individuals with a surplus must make financial decisions that will benefit them in the long-run and help them achieve their financial goals in the future.
 
 
From a business point of view, the process or study of financial management is typically associated with financial control and the institution of financial planning. Financial planning will seek to quantify the various financial resources of a business model and subsequently compare them to its expenditures to create a suitable investment strategy.
 
 
In contrast, financial control refers to a business operation’s cash flow and the effective monitoring of the cash flow that is necessary to establish a strong business model. Cash inflow refers to the amount of money coming into the respective corporation, while the outflow refers to the corporation’s expenditures. Managing this flow of money in relation to the corporation’s budget is essential to institute and maintain an efficient business model. 

All You Need To Know About A Hedge Fund

All You Need To Know About A Hedge Fund What is a Hedge Fund?

A hedge fund is an aggressively managed investment fund that is typically open to a limited range of high net-worth investors who are required to pay a performance fee the fund’s investment professional team or investment manager.

A hedge fund is a term used to describe an investment partnership that is professionally run and managed by a licensed money manager. The fund may take the legal responsibility and structure of a limited liability company or a limited partnership so that if the hedge fund goes insolvent, the creditors attached to the fund cannot seek more money from the investors than what was originally put into the fund.
Hedge Fund Strategies:
Every hedge fund possesses its own investment strategy that will determine the investment approach the fund undertakes. As a general class, hedge funds will institute a strategy to incorporate a wide range of investments and trading activities when compared to traditional long-only investment funds. The wide range of investments is meant to mitigate risk through the adoption of “hedging” techniques. A typical hedge fund will invest in a broad range of assets including long and short positions, bonds, commodities, and currencies. Additionally, to institute a “hedge” the funds will also incorporate complex strategies that include exotic derivatives.
Hedge funds typically pool millions or billions of investment dollars and the gross assets of the underlying fund will typically be higher due to leverage. As a result, hedge funds dominate certain specialty markets such as the derivatives sector through the institution of high-yield investment instruments and distressed debt.
Although hedge funds develop and maintain a specific strategy, there are four predominant strategies (global macro, event-driven, relative value, and directional) by typical hedge funds. The particular investment strategy will shape the fund’s risk and return characteristics. The most common strategy instituted by a hedge fund is the “long/short” strategy, where the fund will take both long and short positions in equity shares traded on major exchanges.

Who Invests in Hedge Funds?
In the majority of jurisdictions in the United States, hedge funds are open to a limited pool of investors. Typically, the investors are comprised of wealthy professionals who meet the criteria established by the regulators of the funds. Upon meeting the regulations (primarily a minimum investment) the investors are accordingly exempted from the regulations that commonly govern ordinary investment funds.

Fees Associated with Hedge Funds:
Hedge fund managers will receive either a performance fee (or an incentive fee) along with a management fee. A typical hedge fund manager will charge a “2 and “20 fee, which refers to a management fee of 2% (taken from the fund’s net asset value each year) and a performance fee of 20% (which is charged based on the fund’s profit).
As is common with other forms of investment funds, the management fee of a hedge fund is calculated as a percentage of the fund’s net ass value. The management fees tied into a hedge fund are typically expressed as an annual percentage; however, they are most commonly calculated and paid out per month or quarter.
The management fees associated with a hedge fund is meant to cover the manager’s operating costs, while the performance fees are used to pay out employee bonuses.
Performance fees are a defining characteristic of a hedge fund. The manager’s performance fee is calculated based on a percentage of the fund’s profits, typically counting both unrealized and realized profits. By awarding the manager additional funds for the performance of the fund, performance fees intend to alight the interests of both the investor and the manager of the fund.

Investment Securities Explained

Investment Securities ExplainedWhat is an Investment Security?

Investment securities are tangible certificates or documents that indicate ownership or interest in a business, asset, debt instrument, or government entity.

There are two common types of investment securities: debt securities (such as bonds, Collateralized debt obligation, mortgage-backed securities, or debt-issued derivatives) and equity securities (such as common stock or options).
Investment securities may be purchased on a market place or an alternative listing (such as the Pink Sheets or Over-the-Counter) with the fundamental purpose of earning a profit. Individuals, businesses, or government entities will purchase investment securities to diversify their funds and attempt to generate a profit following the sale of their particular investment security.
Debt Obligation Investment Securities:
A debt obligation investment security is a type of financial instrument where the investor purchases a form of debt from the issuer. Bonds, which are the most common form of debt obligation investment security, are issued by corporations, municipalities, or government entities. When an individual or business entity purchases a bond from the aforementioned issuers they are in essence lending the institutions money for the promise that the issuer will recoup the principal investment in addition to interest payments. The money obtained through the issuance of a bond is used to finance expenditures and provide public services. In turn, the investor will make a profit off the bond (assuming the issuer doesn’t default) through the obtainment of coupon payments.
Bonds are issued with varying maturity dates, coupon payments, and interest rates. Regardless of the specifics associated with the investment security, all bonds are considered debt-instruments that are supplied by the issuer to raise money and are purchased by the investor to earn a profit through the obtainment of interest payments.
Other forms of debt obligation securities include: Treasury Bonds, Treasury Bills, General Obligation and Revenue Bonds, Participating bonds, Zero Coupon Bonds, Convertible Bonds, Treasury Notes, High Yield (Junk) Bonds, Indexed Bonds, Mortgage Backed Securities, Warrant Bonds, Sinking Bond Funds, and Commercial Paper.
Equity Investment Securities
Investment Securities that take the form of equity are typically purchased as shares, which represent partial ownership in a publicly-traded company. The investment in such a company will earn a profit if the stock price exceeds the investor’s purchase price. The following examples are regarded as equity investment securities: common stock, par value, book value stocks, dividends, ex-dividends, treasury stocks, depository receipts, DRIPS, commodities, and varying classes of stock.
In addition to generic stock purchases, investors may purchase derivatives, which are financial instruments that are connected to their underlying security.

Stock Market Crash Facts

Stock Market Crash Facts What is a Stock Market Crash?

A stock market crash refers to any dramatic and excessive decline of stock prices across a significant section of the stock market. Such a precipitous drop contains numerous negative externalities that are tied into the significant loss of paper wealth.A Stock market crashmay be fueled by an assortment of economic factors such as the collapse of the credit market, hyperinflation, the ‘bursting of a bubble’ (housing or .com for example), a global event (such as a terrorist attack), sharp fluctuations in the prices of commodities, failed or a lack of regulations, etc.


What Fuels a Stock Market Crash?
Although an event (such as the ones described earlier) is typically needed to cause a precipitous drop in the prices of stock, panic among investors is the primary characteristic to fuel a stock market crash. When investors follow a herd mentality by executing mass-sales (typically executed when confidence is low or individuals are fearful of losing their wealth) the prices of stock invariably tumble. Such an event sparked the Great Depression, where the majority of investors (due to a lack of information and over exposure to the markets) all sold their positions with reckless abandon.
Some economists describe a stock market crash as social phenomena where external economic events combine with crowd psychology to negatively affect the macro-economy. Typically, stock market crashes take place following these conditions: a prolonged period of rising stock prices and excessive investment into the market generated by an overwhelming sense of economic optimism, a market where price to equity rations exceed long-term averages, or when extensive use of debt is used by market participants. 
There is no numerically significant decline that is needed to define the presence of a stock market crash; however, the term is typically attached to economies that experience double-digit percentage losses in a given stock market index over a period of several days or weeks. Stock market crashes are distinguished from bear markets or common recessions based on the severity of decline experienced.
Bear markers are defined as periods of steady declines in the prices of stock that take place over months or years; as a result  of the extended length, bear markets and stock market crashes, although portray a significant decline in the price of stocks, are not held synonymously.

Money Market Account FAQS

Money Market Account FAQSWhat is a Money Market Account?

A money market account is a unique type of savings account offered by credit unions and commercial banks. Although a money market account is offered like a regular savings account, the primary difference between the two saving strategies is that money markets are attached with higher interest payments and require a higher minimum balance to avoid monethly fees. Additionally, the typical money market account will only allow an individual or entity to withdraw monies from the account 3 to 6 times per month.

Another difference between a money market account and a typical savings account is that, similar to a checking account, the majority of money market accounts enable the investor or saver to write up to three checks per month. The checks issued, will debit monies directly from the money market account similar to a typical checking account.
Similar to bank accounts, the monies kept in a money market account are insured by the Federal Deposit Insurance Corporation (the FDIC). This insurance policy offers protection to the investor even if the underlying bank or credit union goes bankrupt or insolvent.

What does a Bank or Credit Union do with your Money?


Money market accounts are deposit accounts offered by banks or credit unions. The money kept by a bank account or credit union is then subsequently invested in corporate and government securities. In turn, the money market account and the coordinating bank or credit union will pay the depositor interest according to the current interest rates in the money markets.

How is a Money Market Account Legally Viewed?
Similar to a Negotiable Order of Withdrawal Account, a money market account is structured in accordance with Regulation Q, which forbids paying interest on generic checking accounts. As a result, money market accounts bear interest, and enable the depositor to write checks; however, due to various restrictions, money market accounts are not legally viewed as checking accounts.
Since a money market account is not viewed as a transaction account, the investment option is subject to the regulations on saving accounts, primarily the restriction that impedes a depositor from accessing more than 6 withdrawals to third parties per month. Banks or credit unions will discourage depositors from exceeding such limits by imposing high fees or by closing their accounts.

What is the FDIC?
The FDIC is an independent agency of the United States Federal Government that was created in 1933 as a result of the multitude of bank failures due to the economic boom of the 1920s and the subsequent collapse of the economy during the Great Depression. Since the FDIC’s creation, not a single person has lost money by keeping their money in a bank or credit union that was insured by the FDIC.
The monies kept in a money market account with a credit union are insured by the National Credit Union Administration.

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