Strained by Bank Failures, FDIC May Raise Its Deposite Insurance Premiums

08/11/08

[TigerLikesRooster]

FDIC Fund Strained by Bank Failures May Lift Premiums (Update2)

[TigerLikesRooster]

Banks had better fail sooner than later if they are going to do anyway.:-)

[TigerLikesRooster]

Ping!

[decimon]

``Healthy banks are paying for the mistakes made by failed banks.''

Therein lies the rob.

[ex-Texan]

$ 495 Billion is writedowns will do that. No mystery here. I talked last night to a buddy in the finance world. He says 'Our financial system is screwed' or words to that effect. He said it more graphically than I did. In his words, '2009 will open some eyes . . .'

Just like Frosty Woolridge was saying last night on Coast to Coast radio: The U.S. is infected with illegal aliens. All over the U.S. illegals are registering to vote. Even the MSM are reporting on this. It's too late now to change anything. Open borders and drug corruption have ruined the USA.

[TigerLikesRooster]

'2009 will open some eyes . . .'

I suppose all those debts would not magically disappear. By the way, is financial world really deleveraging as a whole? A report says that the number of hedge funds are actually on the increase: Cayman Hedge Funds Break 10,000 Barrier (net annual growth of 12%)

[biff]

“Strained by bank failures”???? Jeese, we are just into the prelims, wait for the main show.

[RSmithOpt]

It's one of the most politically corrupt / corporate corrupt, orchestrated banking lies ever conceived in this country to murder the middle class, PERIOD!

Now the crooks have moved the money offshore.

[GOPJ]

The Fed should switch incentives. Raise the rates for careless sloppy banks, lower the rates for highly responsible banks.

Isn't there a FICO for banks? And if not, why not?

[decimon]

Isn't there a FICO for banks?

There are rating services.

[GOPJ]

Based on a banks ratings, does the FDIC charge some banks more ( say a WAMU type) and some banks less?

[decimon]

Based on a banks ratings, does the FDIC charge some banks more ( say a WAMU type) and some banks less?

I don't know. From the FDIC site: "This assessment webpage is a summary of the many assessment related changes that have been implemented as a result of the Federal Deposit Insurance Reform Act of 2005, beginning January 1, 2007, and with the June 29, 2007, assessment collection. The assessment webpage provides bankers with a brief explanation of changes to the FDIC’s quarterly invoicing process for deposit insurance premiums. In addition, it details the computation of the assessment base and the pricing methodology used to determine the premium cost."

http://www.fdic.gov/deposit/insurance/assessments/index.html

That suggests to me that they do have a rate structure.

[GOPJ]

Thanks for the help. You’re right - it does look like they have a rate structure.