Posted on 03/04/2009 11:45:13 AM PST by txmissy
WASHINGTON — The head of the Federal Deposit Insurance Corp. has warned that the fund insuring Americans’ bank deposits could be wiped out this year without the money the agency is seeking in new fees from U.S. banks and thrifts.
FDIC Chairman Sheila Bair acknowledged, in a letter to bank CEOs, that the new increased fees and hefty emergency premium the agency voted to levy last week will bring a “significant expense” to banks, especially amid a recession and financial crisis when their earnings are under pressure.
“We also recognize that assessments reduce the funds that banks can lend in their communities to help revitalize the economy,” Bair wrote.
But given the accelerating bank failures that have been depleting the deposit insurance fund, she said, it “could become insolvent this year.”
“Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative,” Bair wrote in the letter dated Monday to the chief executives of the nation’s 8,305 federally insured banks and thrifts.
(Excerpt) Read more at chron.com ...
Actually, I do know - why do you ask?
LOL. True.
..well the addiction to chicom crap has whaned(loaded ships sittin’ & waiting to go nowhere), which seems more of a surprise to them than us, so I say that playing field is a bit scrabbled as well.
Exactly." <<<,
I Third the exactly,
AFL-CIO publicly pushing nationalization ,and now this comment by FDIC
Alinsky to the tenth power tactics..
I pulled all but walking around funds out last week , will only keep pocket change in any bank.,
call me a backwards / crazy hillbilly...I Don't like the way the stew is smelling
too much changing way to fast for me,
and if it looks like a duck and quacks.....
I don’t know whether Obama thinks his decisions are “dumb” or not. It depends on his goals. I don’t know them, but I’m surmising what they are based on what I’ve seen. I don’t think his goals are consistent with a strong America. Do you?
Repeat for emphasis: the FDIC won’t “go broke” unless the whole government “goes broke”.
And this is where we’re supposed to trust the government...? We’re writing trillions of dollars worth of debt on the backs of the productivity of the American worker.
Even Obama cannot afford to allow the financial system to fail, so general funds will be provided to the FDIC as necessary.
Based on what’s happening and Obama’s policies - it will take years and years to get out of this mess - at four years, another election.
>> And this is where we’re supposed to trust the government...? We’re writing trillions of dollars worth of debt on the backs of the productivity of the American worker.
Yes, and that — the impending inflation from the government’s fiscal irresponsibility — is a legitimate worry. I’m planning for it, as I hope and trust you are.
But don’t make the mistake of believing that your bank deposits will somehow evaporate overnight leaving you broke tomorrow.
Move deliberately, yes, but haste and panic are NOT productive.
just my 2c
>> Actually, I do know - why do you ask?
It wasn’t clear from your post. If you understand how the system works, then nevermind, my bad.
I think we qualify as broke when we ask the Chinese to buy our debt,, and the unanswered question is what did Hitllary give away to secure the debt..??
Whoa, now that is scary!
So how does that work? I mean transferring money out into cash. How do you do an electronic withdrawal and end up with cash? I think I must be missing something.
Thanks for your help.
Sorry, but I’m afraid you’re asking the wrong person.
See post #59, by Is2C. I think that poster is the one you want to ask.
>> the unanswered question is what did Hitllary give away to secure the debt..??
Oh, don’t worry it wasn’t flat panel teevees, stereo sound systems, BMWs, jetskis, McMansions, or anything Americans consider valuable.
Just some blueprints, schematic diagrams, computer software... stuff like that...
401K’s soon to become 0.401K’s.
Really. MrL9 keeps telling me to take money out of the bank so we can bury it somewhere for easy access.
My question is will money we have in our checking account just one day be gone? I know the banks can’t do that, it is our money, but is that stupid of me to think? Will we have any notice that our money in the bank is not safe anymore?
I’m with Wells Fargo, btw.
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