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The agency that guarantees bank deposits said Thursday there are no immediate plans to borrow money from the government to bolster its insurance fund, which has shrunk under the weight of collapsing banks.
The fund fell 20 percent to $10.4 billion in the second quarter as U.S. banks overall lost $3.7 billion, the Federal Deposit Insurance Corp. said. That's the fund's lowest point since 1992 at the height of the savings-and-loan crisis. Some analysts have warned that the fund could fall below zero by year's end.
he FDIC estimates bank failures will cost the fund around $70 billion through 2013. It's slipped to 0.22 percent of insured deposits, below a congressionally mandated minimum of 1.15 percent.
Despite the shrinking insurance fund, customers have nothing to worry about. The FDIC is fully backed by the government[/v], which means depositors' money is guaranteed up to $250,000 per account. And the agency still has billions in loss reserves apart from the insurance fund.
where in the name of everything holy is all this money going to?
U.S. District Court Judge Jed Rakoff's request for more information about $3.6 billion in bonus payments for Merrill Lynch employees was shockingly basic in its scope. But related revelations could strike a blow to BofA's standing in court, as well as to other companies that reach regulatory settlements without "officially" admitting to doing anything wrong.
The Securities and Exchange Commission settled its beef with BofA last week, planning to accept $33 million from the bank to resolve charge that BofA made "materially false and misleading" statements to shareholders. The SEC claims that Bank of America had known about and approved the hearty bonuses ahead of the Merrill-BofA merger.