The FDIC is "going to run out of money", Congress bail out inevitable

[w¡n9Nµ7 §£@¥€r 123]

The FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits, FDIC Chairman Sheila Bair said Friday.

...

NYU Economics Professor Nouriel Roubini predicts that Congress will have to intervene in order to bail out the deposit fund.

"They're going to run out of money, with certainty," he predicted.

...

Indeed, on Friday afternoon FDIC Chairman Sheila Bair said in an interview on C-SPAN television that banks holding brokered deposits may be charged higher premiums in order to bring back the reserve to an acceptable size.

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This means higher premiums for FDIC insured banks, analyst Ely noted, further complicating an already tenuous situation for the U.S. banking system. Banks will most likely pass the increased costs onto their customers, he said.

"Banks are going to pass it through to their customers through higher interest rates on loans, lower interest on deposit," Ely predicted.

http://www.rttnews.com/ArticleView.aspx?Id...Num=2062_3100_1

[Niels Bohr 72]

We do not want to see the US goes bankrupt.

[w¡n9Nµ7 §£@¥€r 123]

We do not want to see the US goes bankrupt.

No, we do not.

[ready4ONE 5,400]

The FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits, FDIC Chairman Sheila Bair said Friday.

...

This means higher premiums for FDIC insured banks, analyst Ely noted, further complicating an already tenuous situation for the U.S. banking system. Banks will most likely pass the increased costs onto their customers, he said.

"Banks are going to pass it through to their customers through higher interest rates on loans, lower interest on deposit," Ely predicted.

http://www.rttnews.com/ArticleView.aspx?Id...Num=2062_3100_1

And thus, the solution is to pass the buck on to the smallest fish, which feed the big fish, which leads to starvation for the big fish... We are heading for a pretty serious financial crisis in this country, it would be nice to see the A**holes responsible paying for it instead of everyone else. [As a realist I know that won't happen though.]

[LaL 418]

The FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits, FDIC Chairman Sheila Bair said Friday.

...

This means higher premiums for FDIC insured banks, analyst Ely noted, further complicating an already tenuous situation for the U.S. banking system. Banks will most likely pass the increased costs onto their customers, he said.

"Banks are going to pass it through to their customers through higher interest rates on loans, lower interest on deposit," Ely predicted.

http://www.rttnews.com/ArticleView.aspx?Id...Num=2062_3100_1

And thus, the solution is to pass the buck on to the smallest fish, which feed the big fish, which leads to starvation for the big fish... We are heading for a pretty serious financial crisis in this country, it would be nice to see the A**holes responsible paying for it instead of everyone else. [As a realist I know that won't happen though.]

I am getting pretty bitter about this as well - naturally since it's affecting me. I just sent an email back to my KS lender telling him to stuff his higher PMI fees. I can wait until I can get a 20% down conventional and they made my decision much easier .