Posted on 09/23/2008 9:13:11 PM PDT by Notary Sojac
WASHINGTON, Sept 23 - Banks can expect to pay significantly higher premiums for deposit insurance starting next month, the head of the Federal Deposit Insurance Corp said on Tuesday.
"We are going to be raising premiums in early October, not shockingly but significantly," FDIC Chairman Sheila Bair said during a discussion on housing and financial markets.
Bair repeated her view that the Deposit Insurance Fund, which stood at $45 billion at the end of June, has sufficient funds to withstand an expected increase in bank failures.
"I think, actually, the banking sector is holding up pretty well," she said.
(Excerpt) Read more at malaysia.news.yahoo.com ...
Woo hoo!! Our banking system is sound as a dollar!!
Do you normally read Yahoo Malaysia?
No, just googling “FDIC” to see what I could come up with that might offset the Bailout This Week Or The World Will End crowd.
hey, you screw up and file lots of claims against the insurance company and your premiums go up. Cause -—> Effect.
Of course, it is also the responsible thing for FDIC to do to ensure the taxpayers are not taking even more of the hit on these excessively irresponsible practices within the banks.
“We are going to be raising premiums in early October, not shockingly but significantly,”
Since Wamu alone is likely to halve the FDIC insurance fund, they should have opted for a shocking raise in premiums. Now they’ll be playing catchup.
In the end we pay for this insurance as depositors or borrowers. The banks pay nothing. The insurance premium is just hidden.
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