Tag Archives: Federal Deposit Insurance Corp

Mar 5 2009

Bair Says Insurance Fund Could Be Insolvent This Year (Is our money safe in banks?)

Not looking so good for people with money in banks?

Federal Deposit Insurance Corp. Chairman Sheila Bair said the fund it uses to protect customer deposits at U.S. banks could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency.

“Without these assessments, the deposit insurance fund could become insolvent this year.

“A large number” of bank failures may occur through 2010 because of “rapidly deteriorating economic conditions,” Bair said in the letter. “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.”

Consumers should watch this issue closely, said Edmund Mierzwinski, consumer program director at U.S. PIRG, a Boston- based consumer-watchdog group.

“I wouldn’t take their money out of the bank yet,” Mierzwinski said. “If the FDIC is saying that there is this serious problem, then we should all be concerned. I think there is a chance the FDIC is going to have to ask taxpayers for money in the future.” Read More

Can we expect the government to come out and warn the Americans with money in the banks in time to get their money out….I would think not!

LINKS:

(1) Boo-freaking-hoo: Million-dollar home owner whines about bailout limits

(2) Congressional Kabuki theater: Why do we let Treasury/Fed/AIG walk all over us?

Feb 28 2009

Banks Shut Down in Illinois and Nevada

Regulators on Friday closed Heritage Community Bank in Illinois, and Security Savings Bank in Nevada, marking 16 failures this year of federally insured institutions.
The Federal Deposit Insurance Corp. was appointed the receiver of the banks.
On Friday, the government announced plans to increase its stake in beleaguered Citigroup Inc. to as much as 36 percent by converting its preferred stock to common stock. While the conversion will dilute current shareholders’ investments.
Still, the news offered little comfort to investors who are worried about the stability of other banks.
Read More

Obama keeps spending and banks keep failing, don’t he see that this is going in the wrong direction? Need to stop spending, cut taxes on the working people and do away with capital gain tax or at least cut it in half. If he want to spend we need to replace alot of military equipment and that would be more jobs, and we could use at least a 100,000 more troops in the military. By the way where is he going to find jobs for the NG troops he’s pulling out of Iraq?