|
FDIC is supposed to back my money....
So should I start hiding money in my mattress at home? It's bad enough that everyone wanted the push for Direct Deposit, now what happpens when I can't get to my money in the bank?
FDIC warns US bank deposit insurance fund could tank
Thu Mar 5, 1:20 pm ET
WASHINGTON (AFP) – The US government is warning banks that its deposit insurance fund could go broke this year as bank failures mount.
The head of the Federal Deposit Insurance Corporation, Sheila Bair, in a letter to bank chief executives dated March 2, defended the FDIC's plan to raise fees on banks and assess an emergency fee to shore up the fund and maintain investor confidence.
Bair acknowledged the new fees, announced Friday, would put additional pressure on banks at time of financial crisis and a deepening recession, but insisted they were critical to keep the insurance fund solvent and protect.
"Without these assessments, the deposit insurance fund could become insolvent this year," Bair wrote.
The FDIC chief said in the letter that the rapidly deteriorating economic conditions raised the prospects of "a large number" of bank failures through 2010.
"Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative," she wrote.
The FDIC last Friday announced it would impose a temporary emergency fee on lenders and raise its regular assessments to shore up the rapidly depleting deposit insurance fund that insures individual customer deposits up to 250,000 dollars.
A week ago the FDIC reported a sharp depletion of the deposit insurance fund in the fourth quarter due to actual and anticipated bank failures, to 19 billion dollars from 34.6 billion in the third quarter.
The FDIC said it had set aside an additional 22 billion dollars for estimated losses on failures anticipated in 2009.
__________________
The question is never simply IF someone is lying, it's WHY. - Lie To Me
We must always fear the wicked. But there is another kind of evil that we must fear the most, and that is the indifference of good men - Boondock Saints
Iraq was never lost and Afghanistan was never quite the easy good war. Those in the media too often pile on and follow the polls rather than offer independent analysis. Campaign rhetoric and politics are one thing - the responsibility of governance is quite another.
- Victor Davis Hanson
|
Threaded Mode
