What's In Your Banks Wallet?Submitted by Doug Eberhardt on Fri, 02/26/2010 - 19:49
The Banking Crisis Is Far From Over Revisited – FDIC Troubles and Bank Shenanigans
In August of 2009, I wrote an article The Banking Crisis is Far From Over where I concluded banks were still threatened by bad assets, forced to pay higher premiums to the FDIC, and market to market accounting was at the center of a heated debate.
When I wrote that article, 77 banks had failed and by the end of 2009, just 4 months later, the number of failed banks had almost doubled to 140. 20 banks have failed thus far in 2010.
Is the FDIC Solvent Enough To Keep Up This Bank Rescue Pace?
The FDIC solution to shore up their funds was to have the banks themselves pony up three years of dues in advance rather than the "pay as you go" funding. This was to add $45 billion to the fund, yet by November of 2009, the FDIC fund was in the red for the first time since 1992.
Today, the fund sits at negative 20.9 billion with no help in sight.
With these kinds of numbers, does it really matter whether the FDIC insurance limit was raised from $100,000 to $250,000 when the Fund itself is insolvent? I have an idea....why don't they raise the FDIC insurance limit to $1 Million? That will solve all the problems right? Do you see how absurd this FDIC insurance limit number is?
The Problems for Banks Don't End With the FDIC Insolvency
Read the rest here including the latest tricks banks are utilizing to keep the truth of their insolvency hidden from Federal regulators and keep the FDIC from knocking on their doors: http://fedupbook.com/blog/fdic/the-banking-crisis-is-far-fro...