Posted on 10/16/2009 9:55:19 PM PDT by Kartographer
The government insurance fund designed to protect consumer bank deposits will likely stay in the red through 2012, Federal Deposit Insurance Corp. chief Sheila Bair said Wednesday.
Testifying before members of the Senate Banking Committee, the nation's top commercial bank regulator stressed that her agency was taking immediate steps to replenish the dwindling fund. But she said those efforts would not put the rescue fund in the black until a little more than two years from now at the earliest.
(Excerpt) Read more at money.cnn.com ...
I doubt that our printing presses will run out of ink or paper. Oh, what is it that comes after TRILLION?
it’s “in the red” yet keeps passing out money to cover the FDIC insured accounts?
now how could it do that? oh yea... just start printing money
and people wonder why gold goes up while the markets go up... the only thing devaluing is the dollar
Solvent just in time for the Mayan calendar to run out.
I wonder how long it can hold...
Actually, they keep raising the assessments to member banks that are still solvent.
The average consumer never sees this, but the Fed charges each member bank a monthly assessment based on the value of the balances held on the books by that bank. For commercial accounts (corporate accounts, for example), the banks will pass the fee along to those customers, but for the retail accounts (you and me), the banks absorb the charge.
There is wholesale accounting fraud occurring in plain sight. Banks are being tapped for money by the FDIC but are allowed to recognize that charge "over time". Similarly, if banks were forced to "mark" their bad assets on their books, especially the second lien loans now outstanding, they would be effectively insolvent and need more injections of taxpayer money.
Despite recent news about earnings by Citi, BoA and JPM, the banks are still in very bad shape but this fact is being hidden by accounting hanky panky.
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