What agency provides deposit insurance to depositors in U.S. banks?

The Federal Deposit Insurance Corporation (FDIC) is the agency responsible for providing deposit insurance to depositors in U.S. banks. This insurance protects the deposits of individuals and businesses in member banks, ensuring that even if a bank fails, depositors will not lose their insured funds, up to a specified limit. The primary purpose of the FDIC is to maintain public confidence in the U.S. financial system by safeguarding depositors' money.

The other agencies mentioned serve different purposes within the real estate and financial sectors. The Federal Housing Administration (FHA) primarily provides mortgage insurance to protect lenders and promote home ownership, while Fannie Mae and Freddie Mac are government-sponsored enterprises that focus on enhancing the secondary mortgage market by providing liquidity, stability, and affordability in housing finance. Their roles do not include providing deposit insurance, which is solely the function of the FDIC.