FDIC To Increase DIF By $45 Billion The FDIC announced today a proposal to increase the deposit insurance fund (DIF) by requiring financial institutions to prepay three years of assessments. The collection of prepaid assessments will allow the FDIC to cover the cost of future banking failures without tapping their credit line with the US […]
Archives for September 2009
FDIC Seeks To Avoid Treasury Bailout
September 29, 2009 By Leave a Comment
The FDIC Board of Directors will meet today to discuss the Deposit Insurance Fund Restoration Plan, assessments and funding. As the number of banking failures continues to increase, it has become obvious that the current amount of reserves ($10.4 billion) in the FDIC deposit insurance fund (DIF) are totally inadequate to cover expected FDIC losses […]
Regulators Were Blind To Risk In Biggest U.S. Banking Failure
September 29, 2009 By Leave a Comment
The most expensive banking failure in U.S. history was the closure of IndyMac Bank in July 2008. The original estimated loss to the FDIC of $8.9 billion has recently been increased to $10.7 billion or 33% of IndyMac’s assets at the time of closure. The story of how IndyMac Bank was allowed by regulators […]
FDIC Loan Guarantees Under TLGP Decline Again For August 2009
September 27, 2009 By Leave a Comment
FDIC Debt Guarantees Decline 4% In August The FDIC Temporary Loan Guarantee Program (TLGP) was instituted late last year. The program’s stated purpose and goals, according to the FDIC, is as follows: The FDIC has created this program to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt […]
One Failed Bank For September 25, 2009
September 27, 2009 By Leave a Comment
Banking Failures – 95 And Counting 2009 has now seen a total of 70 more failed banks than occurred for all of 2008. The latest banking closure brings total banking failures for 2009 to 95. The latest failed bank on September 25, 2009 had total assets of $2 billion and total losses to the FDIC […]
FDIC Warning On Foreclosure Rescue and Loan Mod Scams
September 18, 2009 By Leave a Comment
Foreclosure Rescue & Loan Mod Scams Prey On Desperate Homeowners The FDIC has issued a warning to homeowners who have fallen behind on their mortgage payments and may be facing foreclosure to avoid foreclosure rescue and loan mod scams. Unscrupulous individuals and companies are promising desperate homeowner that they can stop foreclosures or get mortgage […]
FDIC Sheila Bair – “Too Big To Fail Creates Enormous Risk”
September 18, 2009 By Leave a Comment
Too Big To Fail Doctrine Needs To Be Abandoned FDIC Chairman Sheila Bair, in a speech at Georgetown University, outlined her plan for a better regulated financial system based on market discipline and ending the “too big to fail” concept. Chairman Bair’s viewpoint is that the doctrine of “too big to fail” rewards mismanagement and […]
2 Failed Banks For September 18, 2009 – Irwin Financial’s “Adequately Capitalized” Banks Closed
September 18, 2009 By Leave a Comment
Banking Failures – 94 And Counting 2009 has now seen a total of 69 more failed banks than occurred for all of 2008. The latest banking closures by the FDIC bring total banking failures for 2009 to 94. The latest two failed banks on September 18, 2009 had total assets of $3.2 billion and total […]