Wednesday, May 27, 2009

FDIC Quarterly Banking Profile

No real surprises here:

- The Deposit Insurance Fund (DIF) dropped to $13 billion at the end of the first quarter. The corresponding reserve ratio is only 0.27%, that $13 billion is backing $4.8 trillion in insured deposits. NOTE: these figure only include funds up to the $100,000 limit. However, the limit is $250,000 until 2013. Therefore, the reserve ratio is overstated.

- Assets of problem banks grew to $220 billion. Cuffing it, I would say that represents about $183 billion in deposits. That means the DIF could be wiped out by a 7.1% failure rate of these problem banks.

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