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Posts Tagged ‘FDIC’

FDIC Hits Record “Default” Level As Deposit Insurance Fund Plunges By $12.7 Billion To NEGATIVE 20.9 Billion

Posted by seumasach on February 24, 2010

Zero Hedge

24th February, 2010

The U.S. banking industry continued to struggle in the fourth quarter, as the number of banks on the brink of failure continued to rise and the government’s fund to protect deposits fell sharply into the red.

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The FDIC is in trouble

Posted by smeddum on August 6, 2009

THE FDIC IS IN TROUBLE
by Bud Conrad
Chief Economist for CaseyResearch.com and Editor, The Casey Report
August 4, 2009
See charts at Financial sense

As we all know, the Federal Deposit Insurance Corporation (FDIC) guarantees depositors that they’ll get their money back if a bank fails, at least up to a certain amount. To fund its operations, the FDIC collects small fees from the banks that are held in reserve for the purpose of taking over troubled banks and paying off depositors. Read the rest of this entry »

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FDIC To Go Bankrupt in 2009?

Posted by smeddum on January 7, 2009

 

January 06, 2009

FDIC To Go Bankrupt in 2009?    

Posted by Chris Brunner at January 6, 2009 02:43 PM

If you keep up with LRC, you probably already know that a major role of the FDIC is to give the public a false sense of confidence. Typically the FDIC keeps a little over fifty billion dollars in its Deposit Insurance Fund to cover the deposits of account holders in the event of bank failure. According to the data published on September 30, 2008, there is just under $8.8 trillion deposited in US banks. The fact that the FDIC has squat for cash to cover bank failures isn’t really news. So long as there are only three or four bank failures each year, the FDIC is able to cover the losses, and life goes on. Read the rest of this entry »

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FDIC Running out of Cash: No Bank is Safe in this Alarming Atmosphere

Posted by seumasach on September 20, 2008

 

Global Research,

September 19, 2008

The Age

Be very, very careful. There are reports the US Federal Deposits Insurance Commission is running out of money. Chairman Sheila Blair has been forced to issue a statement. “US banks are overwhelmingly safe and sound and the Government fund used to cover insured deposits will be adequate to absorb any losses, even high losses,” she says.

But Brian Bethune, US economist at consulting company Global Insight, said: “Additional failures of large banks or savings and loans companies seem likely, and that could overwhelm the FDIC’s insurance fund.”

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Guarantees Are Worthless,When the System Is Bankrupt

Posted by seumasach on September 6, 2008

 

John Hoefle

EIR

5th September

While the Federal Deposit Insurance Corporation (FDIC) has gone to great lengths to assure the public that their bank deposits are safe—at least up to the insured limit—it is obvious that the agency lacks the capital required to back up its claims. As long as the FDIC closes only small banks, it can meet its responsibilities, but it does not have the resources to even begin to deal with the magnitude of the crisis it faces.

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DIC chief is facing exceptional challenges

Posted by smeddum on September 1, 2008

DIC chief is facing exceptional challenges
By Eric Dash
and Geraldine Fabrikant
The New York Times Salt Lake City Tribune
Article Last Updated: 08/31/2008 12:25:23 AM MDT

WASHINGTON – Sheila Bair anticipated the mortgage crisis long before most other regulators. But she never dreamed it would wreak so much havoc on so many banks.
More than a year after the credit crisis first flared, Bair, the chairwoman of the Federal Deposit Insurance Corp., warned last week that the outlook for the ailing banking industry was bad – and getting worse.
The swelling tide of toxic home loans is proving to be even more worrisome than initially feared, Bair said. She is struggling to clean up the mess and forestall home foreclosures with a plan to ease loan terms for hard-pressed homeowners.
”It is going to be a slog to work though this, but there is no easy way to do it,” Bair said about her plan during an interview in her office here. ”We haven’t seen the trough of the credit cycle yet.” Read the rest of this entry »

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FDIC Under Pressure

Posted by smeddum on August 29, 2008

Market Scan
FDIC Under Pressure Forbes
Carl Gutierrez, 08.27.08, 5:55 PM ET
The Federal Deposit Insurance Corp, the government’s designated spotter, is starting to sweat under the pressure of so many firms sitting in hot water.

The number of troubled U.S. banks rose to 117 in the second quarter, and it’ll get worse if the housing slump and credit crisis continue, according to the Federal Deposit Insurance Corp, commonly know as the FDIC. Specifically, the number of “problem” lenders increased in the second quarter to 117, with $78.3 billion of assets, from 90 lenders with $26.3 billion of assets three months earlier. Read the rest of this entry »

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Who Really “Insures” the FDIC?

Posted by smeddum on August 28, 2008

Who Really “Insures” the FDIC?

Wednesday, August 27, 2008 – Vol. 10, No. 204
Today’s comment is by David Newman, Market Analyst for The Sovereign Society.

Insurance is one of those things that’s supposed to help you sleep at night. It’s right up there with putting locks on your doors and installing airbags in your teenager’s new car. It should mean that you’ve got one less thing to worry about.

So when you find out that the insurance policy itself may be at risk, it’s basically like hearing all those precautions were just a huge waste of time.

All chances of a good night’s sleep are gone forever. Read the rest of this entry »

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Anatomy of a bank failure: When the liquidators come calling

Posted by seumasach on July 2, 2008

Damian Paletta
Wall Street Journal
Sunday, June 8, 2008(Charleston.net)

— At 7 p.m. on Friday, Mayor Chris Etzler walked through the back door of First Integrity Bank. The lobby should have been closed for the weekend, but dozens of strangers in dark suits were bustling about with laptops and file boxes. Someone had just delivered 32 pizzas.

Dan Walker, a top official with the Federal Deposit Insurance Corp., a Washington, D.C., bank regulator, had summoned Etzler to explain what was going on: The FDIC had just taken over First Integrity.

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