Posted on 02/27/2009 6:05:32 AM PST by rabscuttle385
The federal insurance fund that protects most bank deposits is being drained by a sharp rise in bank failures and has dwindled to its lowest level since 1993, the Federal Deposit Insurance Corp. reported yesterday.
Depositors are not at risk because the fund is backed by the government, but taxpayers could be forced to reach into their wallets if the decline continues.
When a bank fails, the FDIC pays up to $250,000 to each account-holder to replace whatever money does not remain in the vaults. The fund is replenished by assessments on banks, but over the last year, much more money left than arrived. And the pace of bank failures continues to increase.
The fund held $52.4 billion at the beginning of 2008. One year and 25 bank failures later, the fund held $18.9 billion.
So far this year, 14 banks have failed, draining another $1.7 billion from the insurance fund.
The FDIC's board is scheduled to vote this morning on increasing the quarterly assessment that banks must pay. The board also could vote to impose a one-time special assessment to replenish the fund more quickly. FDIC officials declined to say yesterday how large an increase was likely.
If money cannot be collected quickly enough from the industry, the FDIC could be forced to borrow money from taxpayers by taking a loan from the Treasury Department.
(Excerpt) Read more at washingtonpost.com ...
Anyone NOT see this coming?
Wink wink!
Borrow my ass, it's confiscated!
Worse, it’s confiscated from our unborn grandchildren.
And that is SO immoral.
So far this year, 14 banks have failed, draining another $1.7 billion from the insurance fund.”
------
Which, is to say it is not currently at 18.9, it is now at 17.2!
If I have done my math correctly the loss is about $2 trillion per month, averaged out over the past 14 months. But that number is not necessarily an accurate representation, as the losses didn't really begin to drain the FDIC funds until about August IIRC.
So...
Averaged over the entire 14 months...$2T/ month drain
Averaged since August ‘08...$5T/ month...that gives the FDIC funds about 3 months, provided that new funds are added and no panic sets in.
And, today is FederalReserveFriday...
Bookmark & BTTT.
I’ve been keeping my account as low as possible and holding on to more physical cash. This is only going to get worse.
The group that insures pension funds from bankrupted companies is next...
>>>Worse, it’s confiscated from our unborn grandchildren.<<<
Worse than that. It’s confiscated from our unborn great-great grandchildren.
I read a recommendation a few days ago that suggested putting cash in a safe deposit box. Keeping it at home could be a danger too - and when a bank goes under you'll still have access to the box.
They are going to vandalize our graves in anger and disgust.
“Keeping it at home could be a danger too - and when a bank goes under you’ll still have access to the box.”
I wonder about this because there are scanners that can go into any bank vault and determine how much currency is in each box due to the new strips put in the currency.
Currency is considered “detectable wealth” whereas diamonds are considered “undetectable wealth”.
I ya’ll want you can ship your cash for storage to me and I’ll keep it safe for you pending the final collapse at which time you can withdraw it: simply put the cash in a shoe box and mail it to: Tony Safroni, c/o Greyhound Bus Station Locker no. 1171, Detroit, MI 79771.
I will seal your cash in baggies; put the baggies in water tight containers and then place the containers in concrete box forms, fill the forms with concrete and then drop the concrete blocks into Lake Michigan. All at no cost to you!
If you like, you can provide a tax deductible donation which goes toward helping me care for my seeing-eye dog Waldo.
For possibly a very limited period of time.
Seems like it should be fairly easy to buy a bank these days. Let’s buy one and offer banking services to CONSERVATIVES...
oops...my numbers should have been in “billions”, not trillions.
sorry
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.