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FDIC's Bair warns on bank deposit insurance fund
Houston Chronicle ^

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 ...


TOPICS: Breaking News; Business/Economy
KEYWORDS: 111th; banking; bho44; economy; fdic; first100days
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To: txmissy
If FDIC goes under, that's cats lying down with dogs mass chaos territory.

If a bank falls in the forest and the money in it isn't worth anything, will there still be a run? That's the $64,000,000,000,000,000,000 question.
21 posted on 03/04/2009 11:57:45 AM PST by mysterio
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To: GoCards

I was wondering the same thing about my savings account.

UGH!


22 posted on 03/04/2009 11:57:52 AM PST by txmissy
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To: txmissy

This is where we Nationalize the entire banking system...


23 posted on 03/04/2009 11:58:27 AM PST by jessduntno ("Extremism in the defense of liberty is no vice! Moderation in the pursuit of justice is no virtue!")
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To: Nervous Tick

Thanks...that makes me feel better....a little.


24 posted on 03/04/2009 11:59:00 AM PST by txmissy
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To: jessduntno
This is where we Nationalize the entire banking system..

This is part of PR assault behind that goal.
25 posted on 03/04/2009 12:00:59 PM PST by allmost
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To: txmissy

There was a story the other day about increased requirements for banks from the FDIC.


26 posted on 03/04/2009 12:02:14 PM PST by Red in Blue PA (If guns cause crime, then all of mine are defective.)
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To: allmost

“This is where we Nationalize the entire banking system..
This is part of PR assault behind that goal.”

Exactly.


27 posted on 03/04/2009 12:02:42 PM PST by jessduntno ("Extremism in the defense of liberty is no vice! Moderation in the pursuit of justice is no virtue!")
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To: BGHater
EFT, Electronic Funds Transfer, Bet, at some point all this Government stimulus spending will be EFT, with no real money to back it, √-1 = i
28 posted on 03/04/2009 12:03:37 PM PST by Son House (National Disasters Will Be Devastating Since Mr. Øbama's Spending Will Erode First Response Funding)
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To: Obadiah

Exactly ... and then the money that we have sitting in bank accounts, while insured, will be increasingly worthless! Whoo-hoo!


29 posted on 03/04/2009 12:04:00 PM PST by dinoparty
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To: txhurl
Is this Biden’s ‘manufactured crisis’?

Possibly. He was vague enough.

30 posted on 03/04/2009 12:04:58 PM PST by Bahbah (Typical white person-Snow white)
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To: txmissy
"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."

Rot Ro Relroy!

31 posted on 03/04/2009 12:05:07 PM PST by Mad Dawgg ("`Eddies,' said Ford, `in the space-time continuum.' `Ah,' nodded Arthur, `is he? Is he?'")
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To: txmissy
Looks like I will be purchasing a safe and install in the concrete floor. Then I will remove all funds from banks and investment firms. After the Obama induced collapse of the financial system cash will be king.
32 posted on 03/04/2009 12:05:43 PM PST by reader25
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To: Nervous Tick
the FDIC won't "go broke" unless the whole government "goes broke".

You mean we aren't broke already?

I don't know if I am being sarcastic or not at this point..........

33 posted on 03/04/2009 12:07:19 PM PST by Sarajevo (You jealous because the voices only talk to me.)
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To: reader25
After the Obama induced collapse of the financial system cash will be king.

A can of lima beans will be worth more than all that paper in that big safe... and a canned ham will probably buy you a car!


34 posted on 03/04/2009 12:08:08 PM PST by WVKayaker (When you come to a fork in the road, take it. -Yogi Berra)
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To: txmissy

Holy schnikes!


35 posted on 03/04/2009 12:08:43 PM PST by Oldeconomybuyer (The democRATS are near the tipping point.)
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To: txmissy

What that another branch of government is broke.


36 posted on 03/04/2009 12:09:17 PM PST by edcoil (Slave owners could justify themselves too. Think about it Arnold.)
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To: Nervous Tick

Remember what the Obama administration’s goals are. They want to break capitalism. They want to nationalize. They want socialism. I suspect they want communism. This is all part of the game plan.


37 posted on 03/04/2009 12:09:56 PM PST by twigs
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To: reader25
"After the Obama induced collapse of the financial system cash will be king."

EDIT: After the Obama induced collapse of the financial system cash Precious Metals (Lead And Brass) will be king.

38 posted on 03/04/2009 12:11:27 PM PST by Mad Dawgg ("`Eddies,' said Ford, `in the space-time continuum.' `Ah,' nodded Arthur, `is he? Is he?'")
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To: txmissy

Ping!


39 posted on 03/04/2009 12:11:32 PM PST by unkus
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To: allmost

Scary nonetheless.


40 posted on 03/04/2009 12:12:00 PM PST by traderrob6
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