[rabscuttle385]

A big tab on Guaranty would be costly to the deposit fund, whose balance was $13 billion at the end of the first quarter. The FDIC has estimated failure costs on cases since then at $11.2 billion.

A spokesman for the FDIC stresses that it has already set aside an additional $22 billion for failure-related costs in 2009, and adds that congressional action this spring gave the agency access to $500 billion in Treasury credit.

WTH.

[JasonC]

The FDIC collects premiums from all banks continually. The balance at one point in time minus the gross payments out since, is not the current balance - that ignores all inflows over the same time.

The FDIC is not going to fail. It has already obtained backstops from the US treasury (agreed by the Fed incidentally, as well). Banks pay for their FDIC insurance, and over full cycles their payments for it cover all losses covered by that insurance. The FDIC is not a charity.

Stop spreading irresponsible rumors and slander about important American institutions. It is disgusting.

[April Lexington]

A spokesman for the FDIC stresses that it has already set aside an additional $22 billion for failure-related costs in 2009, and adds that congressional action this spring gave the agency access to $500 billion in Treasury credit.

I remember yodeling about this in March. If the FDIC fails to make good on savings accounts, middle America is going to disappear. Gold in foreign safes is looking better by the day...