FDIC Fund Running Dry

FDIC Fund Running Dry

finance.yahoo.com

As the FDIC has had to step in to take over more and more insolvent banks, the fund has dwindled to dangerously low levels. However, don't worry about losing the money in your checking account if your bank goes under. Congress has already approved a $500 billion line of credit to the FDIC. Without a doubt, that line of credit is going to have to be tapped. This does emphasize the insanity of having the FDIC provide the guarantees for the PPIP [Public-Private Investment Program].

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www.istockanalyst.com

The FDIC Insurance Fund has dwindled to dangerously low levels...is this the reason that instead of bring this to a vote before congress, TPTB are arrranging a hush hush back door save? Well if this word spreads, there could be massive runs on the banks. And even if the banks survive this....the prospect of the FDIC paying back the needed loan anytime soon is extremely remote.

This is simply a back-door bailout of the FDIC, set up as a line of credit so it does not increase the reported budget deficit!

Using the FDIC to backstop the Public-Private Investment Program is a way to bypass Congress. More of the same corrupt banking cabal. There is no way that Congress could not have approved the line of credit and let the FDIC become insolvent! So why the backdoor line of credit?

Oh...maybe if this was before Congress for a vote, people might lose confidence in the banking system altogether, worse than it is even now? Maybe there would be stampede runs on the banks....But how long can this be prevented?





finance.yahoo.com
(visit the link for the full news article)

Originally posted by burntheships

FDIC Fund Running Dry

finance.yahoo.com

As the FDIC has had to step in to take over more and more insolvent banks, the fund has dwindled to dangerously low levels. However, don't worry about losing the money in your checking account if your bank goes under. Congress has already approved a $500 billion line of credit to the FDIC. Without a doubt, that line of credit is going to have to be tapped. This does emphasize the insanity of having the FDIC provide the guarantees for the PPIP [Public-Private Investment Program].

(visit the link for the full news article)


Related News Links:
www.istockanalyst.com

PPIP is just an acronym for we the public and we the private pay all losses.

Hmmm...PPIP should be WTPAWTPPAL

Originally posted by imd12c4funn

PPIP is just an acronym for we the public and we the private pay all losses.

Hmmm...PPIP should be WTPAWTPPAL


When we cant pay anymore are they going to put us in debtors prison?
Or will they put the crooks and liars that run the banking cabal in the brink? Nah, not them, but us!

[edit on 28-5-2009 by burntheships]

Face it, if it serves TBTB to keep it going, it'll stay afloat.

At this stage of the game we should all be focusing on things that help make us self sufficient. Counting money, that may or may not be worth anything in the bank that may or may not be there counts for nothing.

I have a buddy who told me he was going to buy a "survival radio" so he could stay informed after TSHTF. He showed me the model, which was battery operated and I chuckled and said, cool, but what's your plan after you run out of batteries...

Oh man, the simple fact that they are telling us NOT to worry about the money in our accounts makes me very, very worried!

For the last several months, I've been extremely tempted to take up cookie jar banking . This poses a problem though because the company my husband works for pays ONLY by direct deposit. There is no option. I've never been comfortable with that. I mean, we would have elected d/d anyway (for him) but the fact that it's required and not optional has never sat well with me.

I am grateful for my paper check, which I foolishly continue to deposit in our account every week. I think I may start cashing it and hide it in various places, under the mattress, bury some in the yard.....

reply to post by Voxxrocks


Your right, our money is not worth much right now...with inflation creeping in will be less...

They make wind up powered radios, and flashlights. Good investment if Sitx happens.

reply to post by jackieps1975


Yeah a wee bit worrisome...Just my two cents, I would buy a safe for the paper.

The FDIC Failed Bank List...

www.fdic.gov...

U.S. bank closure tally reaches 64 ... and counting

FDIC Friday refers to how, with gloomy regularity, the U.S. Federal Deposit and Insurance Corporation (FDIC) uses Friday afternoon to announce which banks have failed in a given week. As of last Friday, July 24th, 64 U.S. banks have failed in 2009. July 24th was particularly costly to the FDIC, as it reported having to draw on more than $800 million from its Deposit Insurance Fund to protect account-holders’ deposits in 6 failed banks in Georgia (plus one in New York).

FDIC Closes Five (5) More Banks on July 31, 2009 in New Jersey, Illinois, Ohio, Florida, Oklahoma

Bank Name State Cert# Date
Mutual Bank Harvey IL 18659 July 31, 2009
First BankAmericano NJ 34270 July 31, 2009
Peoples Community OH 32288 July 31, 2009
Integrity Bank Jupiter FL 57604 July 31, 2009
First State Bank OK 9873 July 31, 2009


remixxworld.blogspot.com...

This was on the Market Ticker Today...

Is The FDIC Broke And Covering It Up?

Yes, the FDIC has a "backup credit line" (a big one at that!) from Treasury, but the fact remains that about 75% of the FDIC's "insurance fund" has been depleted over the last year due to massive and intentional failures to enforce Prompt Corrective Action, with the most-expensive and most-outrageous (thus far) being IndyMac, where OTS was found (by the government's own auditors!) to be complicit in backdating deposits to "cook" capital ratios!

Riddle me this folks: What possible positive purpose can come from the FDIC refusing to seize these institutions when their capital ratios are either negative or clearly going to become negative? These banks have all been train wrecks that I and others have written about for more than a year; Colonial was referenced in a Ticker on the 14th of July of 2008, with my first warning on them more than two years ago in April of 2007.

What do I think?

I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury "emergency" credit line. They're well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!

market-ticker.org...

I wonder if this is also affecting the NCUA?

reply to post by Greenize


Seems not to be a problem at the current time...
Many credit unions carry thier own private insurance.

The NCUA and the FDIC are not the same companies,
although the are both insurance.

reply to post by burntheships


Just remember the number "4"

When it all goes down.........Just remember who gave you that number.......

Keep up the good work....

reply to post by Cloudsinthesky
HI BTS !

But which 4 who/what Clouds?

Failed Bank List
www.fdic.gov...

[edit on 8/2/2009 by Hx3_1963]

Originally posted by Cloudsinthesky
reply to post by burntheships

 

Just remember the number "4"

When it all goes down.........Just remember who gave you that number.......
Keep up the good work....

Well if that is not a cryptic message...I dont know what is!
You know I will be after that one...

reply to post by Hx3_1963


Hi Hx3_1963!
This is what you and I have come to know as
FDIC Friday!

You called it.

money.cnn.com...

Fannie Mae needs another $10.7B in federal aid

The mortgage insurer narrowed its quarterly loss to $14.8 billion, but it is still leaning on the Treasury Department to survive

By Tami Luhby, CNNMoney.com senior writer
August 6, 2009: 6:41 PM ET

NEW YORK (CNNMoney.com) -- Fannie Mae, the government-controlled mortgage insurer, said Thursday that it needs another $10.7 billion from the Treasury Department to stay afloat.

The new infusion means the troubled company has drawn a total of $45.9 billion of its $200 billion lifeline this year. Fannie Mae and its sister firm, Freddie Mac (FRE, Fortune 500), were taken over by the federal government last September amid the global financial meltdown.

In one hopeful sign, Fannie Mae (FNM, Fortune 500) narrowed its quarterly loss to $14.8 billion, or $2.67 per diluted share, down from $23.2 billion, or $4.09 per share, in the previous quarter. The company lost $2.3 billion, or $2.54 per share, in the second quarter last year.

Credit losses from the housing crisis are still to blame for Fannie Mae's dour results. The company racked up $18.8 billion in credit-related expenses during the latest quarter. However, the company reduced its provision for credit losses to $18.2 billion, from $20.3 billion in the first quarter, because of a slowdown in the increase of estimated defaults and losses per default.

The value of non-performing loans on its books increased to $171 billion as of June 30, compared with $144.9 billion on March 31 and $119.2 billion on December 31.

The Obama administration is leaning heavily on Fannie Mae and Freddie Mac to pull the country out of the housing meltdown. They are key players in the president's foreclosure rescue program.

The companies will soon have a new regulator. James Lockhart announced this week that he is stepping down as head of the Federal Housing Finance Agency after more than three years. Ed DeMarco, who helped develop and oversee the insurers' participation in the administration's rescue program, will serve as the agency's acting director.

I know that everyone talks about the lack of common sense,shown by our legislature and in particular our treasury dept. There has to be method to this madness. The Fed authorizing the treasury dept to print money,so they can loan it back to the banks. Keeping the ball in the air so to speak.
Why are they trying so hard to forestall the inevitable? The FDIC is going broke,because the FED has sucked the marrow out of the US banking system. I would venture to say that the FDIC is operated by the Federal Reserve. It would be an easy legal way for the FED to end up with all the banking assets of the country,by useing the FDIC to take the banks over.

The way these things are happening is methodical.The FED will soon have all the bases covered.Then we shall know the beast!!

reply to post by Dbriefed


It does seem like the FDIC is in trouble...
Some great charts here at this link...
I will try to post them in thread soon.

Into the battle against bank insolvency the Fed brings a level of reserves that can best be described as paper-thin. From almost $60 billion last fall, the FDIC’s reserves have been drawn down to only about $13 billion today, a 16-year low. A quick look at the FDIC’s own data shows us how inadequate those reserves are compared to the deposits they are now insuring.

news.goldseek.com...

BB&T buys Colonial bank; 4 other banks fail

Trust fund hit: The failure of Colonial is another blow to the FDIC trust fund, which has had to cover 77 bank failures so far in 2009 -- including four more late Friday (see below).

The fund took a $35.1 billion hit in 2008, and an additional $4.3 billion decline in the first quarter of this year, leaving it with assets of only $13 billion as of March 31. But most of last year's decline was due to $25 billion the agency set aside to cover future losses.

money.cnn.com...