Posted on 05/15/2009 1:08:47 AM PDT by rabscuttle385
Thousands of Home Valley Bank customers recently learned that their Presidential Guarantee accounts have become decidedly less presidential.
Instead of paying a promised 3 percent interest yield annually on the special checking accounts, the southern Oregon bank in mid-April unilaterally cut the rate to 2.02 percent.
Don't blame us, Home Valley executives said. Blame the FDIC.
In February, the federal agency that insures deposits approved a one-time special assessment that will increase the annual charge paid by many Northwest banks by three times or more. That leaves Home Valley and the other 8,300 banks across the country facing a significant new expense when many can't afford it.
As some U.S. banks are struggling to survive, they face significantly higher payments into the Federal Deposit Insurance Corp., which has been depleted by a wave of bank failures.
In a March letter to his customers at its five branches, Home Valley President Robert Ward said his FDIC assessment would jump from $119,000 in 2008 to more than $1.3 million in 2009, although it now appears the increase will not be as large.
The FDIC raised its assessments, not only because of the expense of recent bank failures, but also in recognition that more bad news is expected. The FDIC staff estimates that bank failures could cost the insurance fund about $65 billion from 2009 to 2013.
The 25 banks that imploded in 2008 cost the fund nearly $18 billion. Another 32, including three in the Portland metro area, have failed this year.
(Excerpt) Read more at oregonlive.com ...
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***[FDIC running out of money?]***
The Printing Press would never let that happen.
that is why I always tell people so what when it comes to the FDIC. If all the banks crashed and the FDIC had to print trillions of dollars wouldn’t that cause inflation?
The same thing happened to a local bank that I own stock in and It really pissed off the president of the bank...
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