Six more U.S. banks were closed on Friday. These latest failures are expected to cost the FDIC's insurance fund at least $2.3 billion.
A total of 130 U.S. banks have now failed this year. The cumulative cost of all these failures to the federal deposit insurance fund is more than $28 billion, and counting.
The problem is that this fund has been in the red for over two months.
Last week, the FDIC announced that 552 banks are at risk of going under.
This begs the question: Is your bank safe?
The FDIC is counting on struggling banks to pay three years worth of insurance fund fees (amounting to $45 billion) to help offset the continuing losses.
Yes, the FDIC is relying on insolvent banks to come up with money they don't have, in order to save themselves.
It boggles the mind.
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