FDIC flashes SOS -

[joe_momma]

http://www.mybudget360.com/fdic-flashes-sos-1000-bank-failures-before-recession-ends-fdic-deposit-fund-empty/

(snip)
By the end of the recession, there will be approximately 1,000 bank failures. Does this sound extreme? It should but the numbers don’t cover the entire story. Since 2008 the number of bank failures has reached 269 and this doesn’t include consolidations done through the FDIC where bigger banks ate up smaller banks before they officially failed. Last week, 7 banks failed. At that pace, we are looking at 364 bank failures per year and the actual number of closings per week has consistently gone up. The FDIC is in a precarious situation. The Deposit Insurance Fund (DIF) is technically speaking, broke. They have added additional cash reserves by front loading premiums on surviving banks but this can only stunt the financial bleeding for so long. The problems in the banking system run deep and many of the smaller regional banks are failing because of commercial real estate loans going bad.

[mightymanx]

The FDIC was put on the backs of the tax payers last year.

http://www.gobankingrates.com/banking/fdic-deposit-insurance-extended-to-2013/


FDIC has received approval from the Treasury to extend temporary deposit insurance from the end of this year to 2013. Originally, the amount of moneycovered when deposited in a FDIC-insured bank was $100,000. However, the temporary extension allows for funds to be insured up to $250,000 during this period.


This extension is due in part to Congress approving higherborrowing limits for the FDIC. Now, the $30 billion line of credit the FDIC receives from the Treasury has been increased permanently to $100 billion. Even more, until 2010, the FDIC will be able to borrow as much as $400 billion more from the Fed, if needed.....