Deposit insurance in the early U.S. banking period (before FDIC) came in the form of note insurance, not deposit insurance—if your bank failed, you could take the bank's banknotes to the U.S. Treasury and receive face value, but if you had made a deposit you had no protection and were left in creditor bankruptcy process.

factualpending

Speaker

Dr. Jane Nodell

Evidence Quote

not deposits there was no deposit insurance that National Bank notes if your bank failed you could go to the U.S treasury and they will give you face value for it

Source

A Masterclass In Central Banking | Professor Jane KnodellForward Guidance
Created: 8/11/2026, 1:31:04 AM

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