FDIC's Bair Says Insurance Fund Could Be Insolvent This Year

FDIC's Bair Says Insurance Fund Could Be Insolvent This Year

www.bloomberg.com

March 4 (Bloomberg) -- Federal Deposit Insurance Corp. Chairman Sheila Bair said the deposit insurance fund could dry up amid a surge in bank failures, as she responded to an industry outcry against new fees approved by the agency.

(visit the link for the full news article)

So you have some money in the bank, and the bank goes belly up. You say "FDIC protects my money" Well normally you would be correct, but if this happens you would be wrong.

A situation such as this would cause a run on the banks and that would be bad.

Personally I am leaving my money in the bank, but not all of it. I will be buying some gold as well, just in case.

www.bloomberg.com
(visit the link for the full news article)

Yeah I saw that monday. Or was it yesterday?

Anyway, they sure don't talk about this on CNN or it would cause run on banks.

If they have to pay everyone, they'll print money... making it useless.

The day there's a run on banks, it's the day the US collapse.

I saw that Karlhungis had a post about whether to keep money in the bank or not...well here's your answer. More from the link in the OP:

“A large number” of bank failures may occur through 2010 because of “rapidly deteriorating economic conditions,” Bair said in the letter. “Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative.”

[edit on 5/3/2009 by kosmicjack]

The fund has prolly been gone for a couple months now.

reply to post by bismarcksea


Honestly, you are probably right. It is probably empty as we speak. I was going to said that this might be our only warning, but I wouldn't be surprised if it is already gone with the wind.

Hey, not to worry. I'm sure Timmy, Ben, Hank and Mr. Prez can put there heads together and wrangle a way to cook the books and maybe hit us up for a new bailout.

I feel like a the government is a spoiled teenager who is bleeding the cash out of my pockets. Here guys........just take it all and don't come back!!