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| FDIC Says Deposits in Failed Bank Are 'safe' |
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PlusFDIC Says Deposits in Failed Bank Are
'safe'FDIC Says Deposits in Failed Bank Are
'safe'The Associated PressTwo days after the
Federal Deposit Insurance Company took over
California based IndyMac Bancorp Inc., an
official says the bank will reopen Monday for
business as usual. (July 13)This video
contains ONLY natural sound. No script is
available.
Tags : indymac fdic says deposits failed bank 'safe' |
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Affichage : 3065
Durée : 122 s |
| FDIC May Borrow Money from Treasury.. |
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http://www.securagroup.com/news/archives/arti
cles/2008/AB080827.pdf
When I became Chairman of the FDIC in 1981,
the FDIC's financial statement showed a
balance at the U.S. Treasury of some $11
billion. I decided it would be a real treat
to see all of
that money, so I placed a call to Treasury
Secretary Don Regan:
Isaac: Don, I'd like to come over to look at
the money.
Regan: What money?
Isaac: You know . . . the $11 billion the
FDIC has in the vault at Treasury.
Regan: Uh, well you see Bill, ah, that's a
bit of a problem.
Isaac: I know you're busy. I don't need to do
it right away.
Regan: Well . . . it's not a question of
timing . . . I don't know quite how to put
this,
but we don't have the money.
Isaac: Right . . . ha ha.
Regan: No, really. The banks have been paying
money to the FDIC, the FDIC has
been turning the money over to the Treasury,
and the Treasury has been
spending it on missiles, school lunches,
water projects, and the like. The
money's gone.
Isaac: But it says right here on this
financial statement that we have over $11
billion
at the Treasury.
Regan: In a sense, you do. You see, we owe
that money to the FDIC, and we pay
interest on it.
Isaac: I know this might sound pretty
far-fetched, but what would happen if we
should need a few billion to handle a bank
failure?
Regan: That's easy we'd go right out and
borrow it. You'd have the money in no
time . . . same day service most days.
Isaac: Let me see if I've got this straight.
The money the banks thought they were
storing up for the past half century sort of
saving it for a rainy day is gone.
If a storm begins brewing and we need the
money, Treasury will have to
borrow it. Is that about it?
Regan: Yep.
Isaac: Just one more thing, while I've got
you. Why do we bother pretending there's
a fund?
Regan: I'm sorry, Bill,
FDIC May Borrow Money from Treasury: Report
http://www.fdic.gov/bank/individual/failed/ba
nklist.html
By ReutersCNBC.com
| 27 Aug 2008 | 05:45 AM ET
Federal Deposit Insurance Corp (FDIC) might
have to borrow money from the Treasury
Department to see it through an expected wave
of bank failures, the Wall Street Journal
reported.
The borrowing could be needed to cover
short-term cash-flow pressures caused by
reimbursing depositors immediately after the
failure of a bank, the paper said.
The borrowed money would be repaid once the
assets of that failed bank are sold.
"I would not rule out the possibility that at
some point we may need to tap into
[short-term] lines of credit with the
Treasury for working capital, not to cover
our losses," Chairman Sheila Bair said in an
interview with the paper.
Bair said such a scenario was unlikely in the
"near term." With a rise in the number of
troubled banks, the FDIC's Deposit Insurance
Fund used to repay insured deposits at failed
banks has been drained.
In a bid to replenish the $45.2 billion fund,
Bair had said on Tuesday that the FDIC will
consider a plan in October to raise the
premium rates banks pay into the fund, a move
that will further squeeze the industry.
The agency also plans to charge banks that
engage in risky lending practices
significantly higher premiums than other U.S.
banks, Bair said.
The last time the FDIC had borrowed funds
from the Treasury was at nearly the tail end
of the savings-and-loan crisis in the early
1990s after thousands of banks were
shuttered.
The fact that the agency is considering the
option again, after the collapse of just nine
banks this year, illustrates the concern
among Washington regulators about the
weakness of the U.S. banking system in the
wake of the credit crisis, the Journal said.
Tags : FDIC |
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Affichage : 1252
Durée : 507 s |
| Bank Rescued By FDIC |
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IndyMac Bank has been rescued by the FDIC.
But depositors, worried about the bank's
solvency, still rushed to withdraw their
money. Large sums may still be at risk. Bill
Whitaker reports.
Tags : fdic bill whitaker bank indymac |
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Affichage : 425
Durée : 169 s |
| FDIC Proposal in the WSJ |
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This is outrageous - and stupid.
Want to see the entire housing industry
implode and your house be devalued by 20%?
Just sit on your duff and let THIS happen!
Tags : tickerforum.org |
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Affichage : 1211
Durée : 490 s |
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