Saturday, September 5, 2009

Another Friday "Surprise, Surprise"

Well, it's another Friday... and the Feds announced the seizure another 5 banks today, pushing the number of bank failures this year to 89. This batch of failures cost the FDIC about $401 million.

The FDIC insures deposits at over 8,000 institutions with roughly $13.5 trillion in assets, and reimburses customers for deposits of up to $250,000 when a bank fails. According to the Bloomberg
story, the surge in failures has nearly depleted the Washington-based regulator's deposit insurance fund, leaving it with the lowest reserve since 1993.

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