Moral Outrage
Whew! God help us!

FDIC obligations soon to be U.S. taxpayer obligations

According to AP, the FDIC’s deposit insurance fund “hit a $20.9 billion deficit as of [Dec. 31, 2009].”

Prior to this past week‘s bank failures, the FDIC’s estimated losses from the previous 57 U.S. bank failures (in 2010) stood at about $8.6 billion. –Now the figure is $15.93 billion.

So the FDIC deficit has grown to at least $36.8 billion. (In addition, the FDIC has a huge exposure for worse-than-expected losses on some $165 billion of assets taken over by acquiring banks.)

That pretty much wipes out the $45 billion the FDIC announced it was going to raise by requiring banks to pre-pay premiums for the period, 2010 through 2012.

So obligations of the FDIC will soon become obligations of the U.S. taxpayer, adding billions of dollars each year to already out-of-control federal deficits.

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