THey are controlled an audited by the NCUA itself. The NCUA is a self supprting quasi government agency. They work in concert with the FDIC but not for it. They do screen 10,000 deposits or series of deposits but where does this $5000 crap come from . There is no statutory authority on that. FDIC is trying to intimidate banks to scare them. Its Bull crap. . But FDIC doesn’t tell NCUA crap unless it is STATUTORY— You know — with Congress and the Constitution.
What i find most laughable is what the hell does ten grand buy nowadays ?
Not designed to intimidate banks. Its purpose is to control the sheeple by discouraging bank runs that will topple the house of cards.
Fed Reserve QE is electronic creation of money not printing dead presidents. If there is a bank run, not enough green pieces of fiat currency to hand over to customers.
Note that it took about 4 weeks for banks to topple nationwide during the Great Depression before FDR declared a national banking holiday. Unless the Internet is shut down, it would take less than 4 days now.