Posted on 08/18/2009 3:57:32 AM PDT by louscat
As I have reported here the last few days, 5 banks failed this past Friday and 2 of them were huge. Colonial Bank's failure was the sixth largest in US history, depleting the FDIC's Deposit Insurance Fund (DIF) by $2.8 billion. Community Bank of Nevada was also seized on Friday with the DIF taking a $782 million hit. Total losses for FDIC on Friday is estimated to be $3.7 billion.
So how much is left in the DIF? Well according to this report Saxo Bank Research LINK prior to Friday's bank failures the FDIC DIF had been depleted to only $648.1 million. Subtract $3.7 billion in losses from Friday's closures and the DIF is technically bankrupt by at least $3 billion (or $3,000 million to give you the proper perspective).
There are undoubtably many more bank failures to come before the financial crisis is over. With the DIF technically bankrupt should you worry about the safety of your savings? Certainly not. There is no way the FDIC will not make good on any and all insured deposits.
(Excerpt) Read more at thefinancialphysician.blogspot.com ...
The country is bankrupt!
Should all or very many banks fail in a short period, the FDIC would fail.
Please remember that it is the Federal DEPOSITORS Insurance Company. The FDIC insures depositors, not banks. You are only covered for the stated limits of (I think ) $120,000 irrespective of how many banks you have your money in. No one gets more than the one time maximum.
YES!
Chef Boyardee and junk silver time!
:)
I think you’re wrong on that one. It’s my understanding that the FDIC insures your accounts at each institution up to $100,000...
“There is no way the FDIC will not make good on any and all insured deposits.”
It’s having a difficult time borrowing the money, so will resort to just printing it. Look out below.
FDIC currently insures accounts up to $250,000 individual and $500,000 joint. This increased limit is in effect until January 1, 2014
Chef Boyardee
best spag in jar sauce </thred drift>
Sad, but true. If we go much further into debt, we won't even be able to pay the interest. When you have to borrow money to pay your debts, you are financially dead.
Not sure why you posted that
is it a response to my post?
>> You are only covered for the stated limits of (I think ) $120,000 irrespective of how many banks you have your money in. No one gets more than the one time maximum.
That’s disinformation. Otherwise known as bull$h!t.
There’s enough to worry about in this economy without making up “facts” and spreading them around.
Please go here and learn the facts:
http://www.fdic.gov/deposit/deposits/index.html
FRegards
undoubtably ?
That’s enough money to keep the AF1 fleet in fuel for at least another two weeks.
You're way late to the party.
yes it was a response to your comment regarding FDIC insurance limits
Oops thanks for the heads-up, my mistake.
The current FDIC limits are $250,000 (or $500,000 for certain accounts) per depositor per bank.
$250,000 per depositor per account (a typical husband-and-wife joint account, $500,000) per bank. No individual limit.
Using enough banks, one could deposit $25M into insured accounts.
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