Performance Boats Forum banner

1 - 20 of 22 Posts

·
Registered
Joined
·
1,532 Posts
Discussion Starter #1
Remember everyone telling you that if your money was FDIC insured, it was safe! Guess again!!


FDIC warns US bank deposit insurance fund could tank

Thu Mar 5, 1:20 pm ET
Featured Topics:
AFP/Getty Images/File – The US government is warning banks that its deposit insurance fund could go broke this year as bank failures …



WASHINGTON (AFP) – The US government is warning banks that its deposit insurance fund could go broke this year as bank failures mount.
The head of the Federal Deposit Insurance Corporation, Sheila Bair, in a letter to bank chief executives dated March 2, defended the FDIC's plan to raise fees on banks and assess an emergency fee to shore up the fund and maintain investor confidence.
Bair acknowledged the new fees, announced Friday, would put additional pressure on banks at time of financial crisis and a deepening recession, but insisted they were critical to keep the insurance fund solvent and protect.
"Without these assessments, the deposit insurance fund could become insolvent this year," Bair wrote.
The FDIC chief said in the letter that the rapidly deteriorating economic conditions raised the prospects of "a large number" of bank failures through 2010.
"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," she wrote.
The FDIC last Friday announced it would impose a temporary emergency fee on lenders and raise its regular assessments to shore up the rapidly depleting deposit insurance fund that insures individual customer deposits up to 250,000 dollars.
A week ago the FDIC reported a sharp depletion of the deposit insurance fund in the fourth quarter due to actual and anticipated bank failures, to 19 billion dollars from 34.6 billion in the third quarter.
The FDIC said it had set aside an additional 22 billion dollars for estimated losses on failures anticipated in 2009.
 

·
Colts fan & Stoker owner
Joined
·
8,170 Posts
Heard that on the news this afternoon. Pretty scary
 

·
Registered
Joined
·
78 Posts
I wonder what this news will make everyone do tommarow? Everyone is going to start pulling cash out of the banks. Banks with no cash = no banks. No Banks = no USA. This is some scary @$%
 

·
Premium Member
Joined
·
4,194 Posts
I wonder what this news will make everyone do tommarow? Everyone is going to start pulling cash out of the banks. Banks with no cash = no banks. No Banks = no USA. This is some scary @$%
i agree with your statement, on the other hand if your bank closed and you lost your money how would you feel then..
 

·
Registered
Joined
·
78 Posts
I'm already out of money the past two years hurt me good, if I lost the money I have in the bank o well. I do remember someone posting something a few months back about when the argentine banks collapsed sometime in the beginning of the century, I thought that would be impossible here in the US but now if the FDIC cancels there policys there will be no trust in banks and we will have a collapse of the banking institutions that is just a reality
 

·
Premium Member
Joined
·
4,194 Posts
Exactly...Its the FDIC going broke not your bank correct. I'm with Wells Fargo. They should be safe right...
right, if this happens then your money has no insurance policy..they are stating that they expect some banks to fold this year, which ones who knows..would you drive your car, boat etc around without insurance, if you answer no, then why would you leave your hard earned money in the bank without insurance, just food for thought if this happens..imo only. i am not a financial advisor by any means..
 

·
Registered
Joined
·
6,120 Posts
I'm already out of money the past two years hurt me good, if I lost the money I have in the bank o well. I do remember someone posting something a few months back about when the argentine banks collapsed sometime in the beginning of the century, I thought that would be impossible here in the US but now if the FDIC cancels there policys there will be no trust in banks and we will have a collapse of the banking institutions that is just a reality
So with that thinking. Would it be wise to transfer the $$$ into paying down the balance of a home loan. Or is that not safe either. ????
 

·
Registered
Joined
·
81 Posts
Maybe some one in the banking industry can answer, When the govt. raised FDIC amount 3 months ago from $100K to $250k did this put an additional strain on the FDIC? Does any one look at numbers or do they just throw Ideas out there and say lets see what happens?
 

·
GO CELTICS
Joined
·
2,083 Posts
Thanks Gary..I was almost going to go cash my savings and buy a 28' Eliminator deck boat instead. You saved me. :D
I think you should buy the deck boat call me Ill take care of you:D
 

·
Islander Moho Trash
Joined
·
2,119 Posts
Expect the markets to rally on that great fawking news.:|err
 

·
Administrator
Joined
·
11,648 Posts
Government is broke, just too stupid to know it.

fdic is part of above.... they only had 60 bil approx several weeks ago. Even a small run on major banks would clean them out. Print mo $, that will fix everything.

 
1 - 20 of 22 Posts
Top