FDIC warns US bank deposit insurance fund could tank

[BeatleBoot]

http://news.yahoo.com/s/afp/20090305/bs_afp/financeeconomyusbankinggovernment

WASHINGTON (AFP) – The US government is warning banks that its deposit insurance fund could go broke this year as bank failures mount.

The head of the Federal Deposit Insurance Corporation, Sheila Bair, in a letter to bank chief executives dated March 2, defended the FDIC's plan to raise fees on banks and assess an emergency fee to shore up the fund and maintain investor confidence.

Bair acknowledged the new fees, announced Friday, would put additional pressure on banks at time of financial crisis and a deepening recession, but insisted they were critical to keep the insurance fund solvent and protect.

"Without these assessments, the deposit insurance fund could become insolvent this year," Bair wrote.

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[jwirr]

1. And then all hell is going to break loose because that is everyone's

money on the line.

[NashVegas]

3. Yabbut We're All Debtors, Anyway, Right?

No?

[jwirr]

5. I don't know about you but I am definitely a debtor.

[napi21]

2. Malloy spoke about tthat last night. I agree they should raise the

rates to the banks. After all it was THEIR fault there's so much of a drain on the fund. I disagree with Mike though. He was screaming that you shouldn't keep your $$ in any bank because if it goes dowm the fund won't be able to pay you your money. I'm POSITIVE if the fund gets close to insolvent, Geitner will print money if he has to to keep it alive.

[Deja Q]

4. Who is that in your sig pic? Looks like the spawn of Mama Cass and Charles Manson

:scared:

If the FDIC goes insolvent, I wonder if people will continue to invest in previously-secured bonds and CDs...