Saturday, July 25, 2009

Failure Friday Update

- 64 banks have failed in 2009

- Insurance fund balance on 3/31/09: $13 billion

- Cost of failures since 3/31/09: $11.26 billion

- Special assessment income (one time): $5.7 billion

- Additional income (my estimate): $1.2 billion

- Current balance: $8.64 billion

It is a certainty that the FDIC will run out of funds and tap their credit line with the Treasury Department. This will necessitate the issuance of more Treasury debt and increase the burned n the taxpayer.

No comments: