The FDIC Is in Trouble

peaceandlove · 09-17-2009, 09:48 PM

The FDIC Is in Trouble

By Bud Conrad / Sep 09

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.

Since the Great Depression, a period marked by widespread runs on banks, the FDIC has done a good job of fulfilling its mandate. So how are they doing in this crisis?

In a nutshell, they are in trouble.

The FDIC insures 8,246 institutions, with $13.5 trillion in assets. Not all of them are going bankrupt, of course. Yet as of late July, a disturbing 64 banks had gone belly up this year – the most since 1992 – costing the FDIC $12.5 billion. At the end of Q1, the agency was already asking for emergency funding.

And worse, much worse, is likely yet to come...

Continues with Charts: http://www.escapefromamerica.com/200...is-in-trouble/

ARTICLE SOURCE: http://st0ckman.blogspot.com/2009/09...n-trouble.html Also see current gold and silver prices daily on this blog.

09-17-2009, 09:48 PM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	The FDIC Is in Trouble The FDIC Is in Trouble By Bud Conrad / Sep 09 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. Since the Great Depression, a period marked by widespread runs on banks, the FDIC has done a good job of fulfilling its mandate. So how are they doing in this crisis? In a nutshell, they are in trouble. The FDIC insures 8,246 institutions, with $13.5 trillion in assets. Not all of them are going bankrupt, of course. Yet as of late July, a disturbing 64 banks had gone belly up this year – the most since 1992 – costing the FDIC $12.5 billion. At the end of Q1, the agency was already asking for emergency funding. And worse, much worse, is likely yet to come... Continues with Charts: http://www.escapefromamerica.com/200...is-in-trouble/ ARTICLE SOURCE: http://st0ckman.blogspot.com/2009/09...n-trouble.html Also see current gold and silver prices daily on this blog.