Wednesday, March 04, 2009 1:08:04 PM · by Syncro · 48 replies · 946+ views
DOW at Yahoo ^ | March 4, 2009 | DOW Yahoo
ReportingTim Kephart
Posted on 03/04/2009 1:43:03 PM PST by Syncro
As the current recession continues to deepen, the head of the Federal Deposit Insurance Corp. (FDIC) said that new emergency fees assessed by the agency are needed because without them, the FDIC could become insolvent in 2009, according to a report from Bloomberg News.
The one-time emergency fee was imposed to try and replenish a fund to repay customers for deposits when a bank fails.
That fund lost $33.5 billion in 2008, primarily from 25 bank failures in 2008 according to the Bloomberg report. Just through the first 2 months of 2009, 16 banks have failed, adding to the funds problems.
Not surprisingly, the fees have been opposed by the banking industry, specifically smaller community banks. They claim that the fee could wipe out 50 to 100 percent of their earnings in 2009.
*snip*
Experts say it's unlikely the FDIC would become insolvent because the government agency can tap a $30 billion government loan if it's needed. However, the FDIC has resisted tapping into taxpayer money, instead using fees for bankers as a way to keep money flowing in and out of the organization.
(Excerpt) Read more at cbs4.com ...
Naw, I saw this earlier in the morning ...
It’s just another factor that says all is well, right?
The Feds do not dare let the FDIC go broke. That won’t happen.
How can the FDIC possibly go insolvent? Obama will just tell congress to pass a resolution preventing the insolvency, and then tax the people more to cover it.
I would like to document and index all the events that influenced the 30 minute extreme dip at the end of the market day.
Thanks
Bancorp cuts dividend 88 pct, shares tumble
http://www.reuters.com/article/marketsNews/idINN0453132420090304?rpc=44
US banks mostly fall Wednesday
http://biz.yahoo.com/ap/090304/na_us_banks_stocks.html?.v=1
vs
Wall Street rallies on China hopes
http://www.ft.com/cms/s/0/faaa694c-0844-11de-8a33-0000779fd2ac.html?referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058
I would love to believe this, but since Zero is working over-time to bankrupt the country, I wouldn't be surprised at anything.
This was already posted- how about you stop posting your alarmist fear-mongering observations
How can the FDIC possibly go insolvent? Obama will just tell congress to pass a resolution preventing the insolvency, and then tax the people more to cover it.
Maybe his “secret plan” is to make sure everyone goes broke, not just those in the market.............
well it wasn’t this FDIC insolvency, I told the wife and we discussed if we should do something before the market opened. Surly an Internet search would return this ... I don’t remember which site I was on, but it was one of the many investor sites that I check each AM.
get your money out of your 401k
Personally, I think its just a matter of time before what you say happens. At the rate things are happening, its much closer than anyone realizes.
Sorry if it scares you.
And it's not an "observation" of mine, it's a news article.
If you want to get all your information from one source, read the paper.
There would be a catastrophic run on the banks if the FDIC was allowed to go broke. Obama will do a lot of things but letting that happen will not be one of them.
401K?...FDIC going broke would affect checking and savings accounts most. I didn’t even know 401K’s were insured by the Fed, I thought only money markets had been added to the insurance parameters.
Unfortunately, this article could be an example of irresponsible fearmongering... Plant the idea that the govt may not be able to fund FDIC and there will be a run ont he banks. A run on the banks, hence, we need to nationalize more and more industries...
FDIC warns of insolvency
Oh this is not good.
Obama is a Quadzillionaire and can fix anything with his our tax money.
Done.
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.