As of Friday August 14, 2009, FDIC is Bankrupt

It was eventually going to happen, despite what all the financial gurus and experts out in the market were saying. Here is a clip from an email that I got from an expert in the financial arena.

As of Friday August 14, 2009, FDIC is Bankrupt

As late as in the end of April just before the release of the bank stress tests, … After three new bank failures last Friday (The Friday before last), the FDIC’s Deposit Insurance Fund (DIF) diminished by another $185 million for a total remaining balance of $648.1 million…

Tonight's Bank Failures (Last Friday):

Dwelling House Savings and Loan Association, Pittsburgh, Pennsylvania
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.8 million.

Colonial Bank, Montgomery, Alabama
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.8 billion.

Union Bank, National Association, Gilbert, Arizona
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $61 million.

Community Bank of Arizona, Phoenix, Arizona
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $25.5 million.

Community Bank of Nevada, Las Vegas, Nevada
The cost to the FDIC's Deposit Insurance Fund is estimated to be $781.5 million.

If indeed $641 million was all that remained of the DIF, the FDIC is now bankrupt. Of the $641 million left, Community bank used up 781.5 million and Colonial Bank $2.8 billion. Moreover, according to analysts at the Royal Bank of Canada the U.S still has banking failures in the thousands to face before the crisis is over.

http://globaleconomicanalysis.blogspot.com/2009/08/as-of-friday-august-14-2009-fdic-is.html

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