FDIC in deep trouble
The US FDIC , the Federal Deposit Insurance Corp that guarantees the deposits in US banks, is now in deep trouble with the reserve fund near zero due to 94 bank closures in the last nine months. The US FDIC was very healthy till Lehman Bros collapse happened last year.
Against 25 bank closures in the entire 2008, the FDIC has seen 94 bank closures in the first nine months of 2009, which is eating into its reserves. Now the FDIC is planning to tap either the reserve backup from US FED or apply a new fee on bigger banks to generate additional funds.
Either way it is not a good sign for the US banking system because the US FDIC will continue to face tough times till 2010 end as US banks collapse may continue.