FDIC Hits Record "Default" Level As Deposit Insurance Fund Plunges By $12.7 Billion

[Joanne98]

http://www.zerohedge.com/article/fdic-hits-record-default-levels-deposit-insurance-fund-plunges-127-billion-negative-209-bill

[indepat]

1. Yikes!

:P

[jwirr]

2. When we are unemployed we do not pay in and when we are underemployed

we pay in less. The same is happening to both federal and state taxes.

[CanonRay]

3. Only banks pay into the FDIC fund

people don't.

[westerebus]

6. That may be a "yet" statement.

They have a credit line from Treasury if they need it. I think it's half a billion which would be tax payer dollars.

[westerebus]

9. Need to ammend the amount available to $500 billion.

An according to the FDIC there are 700 banks on the watch list.

[dixiegrrrrl]

11. According to Eliz Warren there are close to 3,000 banks

facing serious commercial loan defaults this year.
She looked very apprehensive when she said that on Charlie Rose last week.

[nc4bo]

4. I thought FDIC asked for a "bailout" from the Treasury. Think I remember something

similar last year. FDIC was going broke due to all the bank failures.

Man the printing presses, they've got some work to do.

[westerebus]

7. They got the banks to pay forward.

The banks agreed to pay their dues ahead of time. The FDIC for some reason doesn't want to give up their autonomy to Treasury.

Wonder why?

Congressman: Ms. Blair what do you think of the Sec of Treasury's plan to bail out AIG?

Ms.Blair: Tim has good taste in ties.

Congressman: Ms. Blair do you support the Sec of Treasury's plan to sell toxic assets?

Ms. Blair: Nice shoes, too.

Congressman: It's good to see you are on board.

[lonestarnot]

8. Yes 1 in 11reportedly teetering on failure.

[Po_d Mainiac]

5. So in perspective...Let me do some basic math

The Federal Deposit Insurance Corp. said Tuesday that its deposit-insurance fund fell to $20.9 billion at the end of 2009, a $12.6 billion drop in the final three months of the year, as bank failures continued at a pace not seen since the savings and loan crisis. The fund's reserve ratio was -0.39% at the end of the quarter, the lowest on record for the combined bank and thrift fund.

The current Wall Street bonuses are $164 billion or 8 (eight) freakin times the current value of the FDIC fund.
:wtf:

[amborin]

10. i posted this the other day and it got locked. can anyone conjecture why?

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=7785190&mesg_id=7785190

also, here's a video on how the FDIC is helping Banks profit:

http://www.thinkbigworksmall.com/mypage/archive/1/32275

http://www.truthdig.com/avbooth/item/fdic_helping_banks_turn_profit_20100227/?ln

[upi402]

12. Maybe that shocking graph was under copyright

Or it may be the same odd reason that other seemingly reasonable threads are getting locked. No idea there :shrug:

[dixiegrrrrl]

13. Here is good info. on the REAL cost of each bank closure

Remember we had 5 banks close this Friday.
Buried down on the FDIC reports is the ACTUAL of closing each bank.
Essentially the FDIC is paying for the garbage loans that the banks were holding in secret.
That means the insured deposits PLUS the debts.
Denninger explains it quite well: ( Remember that "assets" means ( DEBTS)

"I am simply going to take last night's bank closures, which numbered four. One of them has no "deposit insurance fund" estimated loss available, because they didn't find someone to take the assets - they're just mailing checks. But the other three do.

* Waterford Bank, Germantown MD: $155.6 million in assets, $156.4 in insured deposits. They were "underwater" by $800,000, right? Wrong: Estimated loss, $51 million.
That is, the assets of $155.6 million were overvalued by approximately 30% at the time of seizure.

* Bank of Illinois, Normal IL: $211.7 million in assets, $198.5 million in deposits. They were "underwater" by $13.2 million (which is why they were seized), right? Wrong:
Estimated loss $53.7 million.
That is, the the assets of $211.7 million were overvalued by more than 25% at the time of seizure.

* Sun American Bank, Boca Raton FL: $535.7 million in assets (so they claimed anyway), $443.5 million in total deposits. Heh, why did you seize them - they have more assets than liabilities? Oh wait: Estimated loss: $103.8 million, so the actual assets are worth $443.5 - $103.8, or $339.7 million.
That is, the assets of $535.7 million were overvalued by a whopping 37% at the time of seizure.

This isn't new, by the way. In August of 2009 I went through Colonial Bank's failure based on BB&T's presentation to its shareholders on the "merger" - and gift it was given by the FDIC. It too showed that Colonial had been carrying assets on their books at a ridiculous 37% above where BB&T ultimately marked them as a whole.

Folks, your bank is being assessed deposit insurance premiums to pay for these losses. You are paying these losses through increased fees and interest expense on your credit cards and all other manner of borrowing.

You are paying for outrageous, pernicious and endemic balance sheet fraud.


http://market-ticker.denninger.net/

[nc4bo]

14. +1. Thanks. nt