Created Wed 26th Aug 5:03pm PST by 
lola
lola 
Will the FDIC need a bailout from the US Treasury in 2009?
Background: NEW YORK - The government agency that guarantees you won't lose your money in a bank failure may need a lifeline of its own.
The coffers of the Federal Deposit Insurance Corp. have been so depleted by the epidemic of collapsing financial institutions that analysts warn it could sink into the red by the end of this year.
That has happened only once before — during the savings-and-loan crisis of the early 1990s, when the FDIC was forced to borrow $15 billion from the Treasury and repay it later with interest. On Thursday, the agency reveals how much is left in its reserves. FDIC Chairman Sheila Bair may also use the quarterly briefing to say how the agency plans to shore up its accounts. Small and midsize banks across the country have been hurt by rising loan defaults in the recession.
When they fail, the FDIC is responsible for making sure depositors don't lose a cent. It has two options to replenish its insurance fund in the short run: It can charge banks higher fees or it can take the more radical step of borrowing from the U.S. Treasury.
http://news.yahoo.com/s/ap/20090826/ap_on_bi_ge/us_fdic_shrinking_fund
The coffers of the Federal Deposit Insurance Corp. have been so depleted by the epidemic of collapsing financial institutions that analysts warn it could sink into the red by the end of this year.
That has happened only once before — during the savings-and-loan crisis of the early 1990s, when the FDIC was forced to borrow $15 billion from the Treasury and repay it later with interest. On Thursday, the agency reveals how much is left in its reserves. FDIC Chairman Sheila Bair may also use the quarterly briefing to say how the agency plans to shore up its accounts. Small and midsize banks across the country have been hurt by rising loan defaults in the recession.
When they fail, the FDIC is responsible for making sure depositors don't lose a cent. It has two options to replenish its insurance fund in the short run: It can charge banks higher fees or it can take the more radical step of borrowing from the U.S. Treasury.
http://news.yahoo.com/s/ap/20090826/ap_on_bi_ge/us_fdic_shrinking_fund
Settlement details:Announcement of a loan in 2009 is sufficient for settlement as YES -- as reported by a major mainstream news source.
Forecast history %
| Yes |
| ||||
| No |
|
Question suspends in 5 weeks
- Activity: H$29,350 |
- Predictions: 40 |
Comments: 3
Get widget!Predictions (40)
rogerkni
predicted Yes (H$250 at 22%)
sdrawkcabton88
predicted No (H$500 at 61%)
jank
predicted No (H$100 at 61%)
predicted Yes (H$50 at 39%)
frogchopComments (3)
Stake virtual dollars on the outcomes of real news stories! Win more if you're right and climb the leaderboards Learn more...
By joining you are agreeing to our terms of service
Related News 
This news is selected automatically based on the question, its background, options and tags
This news is selected automatically based on the question, its background, options and tags
score: 10
score: 10
score: 10
score: 10
score: 10
The Huffington Post 2 weeks ago
Related Tags
Please log in or join to add a comment