Saturday, September 5, 2009
Bank Failure Update
Starting with this post, the failure list will include only 2009 banks gone bust. The file has become too big to fit properly on blogger.
Five more yesterday, bringing the year's total to 89. Bank management and regulation has turned out to be neither a fail-safe or deterrent from greed and speculation. The Deposit Insurance fund is now empty and will require additional assessments to pay off future failures. Of course, the FDIC can always borrow from the Treasury and saddle us with the bill.
The Chair of the FDIC mentioned a contingent reserve fund during a press conference a few weeks back. I'm not sure about what this exactly is, but it seems to be store of funds that the FDIC draws fund. I will research this.
- Deposit Insurance Fund on 6/30/09: $10.368 billion
- Cost of failures since 6/30/09: $11.125 billion
- Current balance (excluding interim income): ($757 million)