Now that you have run for safety in FDIC insured banks, it appears we are not safe at all. In fact the FDIC announced today that they are in danger of being insolvent by the end of the year is they are not able to assess emergency fees on to the banks. So what does this really mean. Well, if you have $100,000 in a FDIC insured account then the bank is paying .06 per $100 to carry the insurance on that account. The new fees would take that .06 to just over .20. The amount collected for last year was 3 billion. With the new assessment, the banks will need to cough up 27 billion to replenish this fund. The FDIC reports that they are expecting bank failure losses to reach 80 billion (2008-2013) This is double the estimate they gave us last fall. In 2008, there were 25 bank failures. In 2009 there have already been 15.
The banks will obviously protest this and then the FDIC will do it anyway. The FDIC chairwoman, Sheila Bair said "These steps are necessary because banks - and not taxpayers - are expected to fund the system." What? Where does she think this comes from....um, the profits of the banks.....oh wait, they don't have any profits anymore do they?
Your dollar is getting less valuable by the day and it is costing the banks more to insure it....yeah, it's just another day in America!
Marjy
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