FDIC Chairwoman Sheila Bair Says Your Money's Safe, hahaha

Discussion in 'Wall St. News' started by S2007S, Aug 27, 2009.

  1. S2007S


    Okay, who believes this one, we have heard these lies before, shes telling everyone that your moneys safe to prevent any future run on the banking system, im taking her statement as a LIE.

    FDIC Fund Falls 20 Percent. Bair Says Your Money's Safe.

    10:42 am

    August 27, 2009

    By Laura Conaway

    The FDIC fund for protecting $4.5 trillion in U.S. bank deposits slipped by 20 percent to $10.4 billion at the end of June, the the agency reports. A year ago, the fund held more than $45.2 billion.

    So far this year, 81 banks have failed, requiring expensive rescues from the FDIC. The number of banks on the FDIC's "Problem List" rose to 416 at June's end, from 305 in March.

    In a press release, the FDIC noted that more than 28 percent of all member banks reported a net loss in the second quarter. The FDIC says that's because more debtors are failing to pay back the money they owe.

    Losses on commercial paper, the giant short-term borrowing that fuels much of commerce as we know it, totaled $3.6 billion, up from $366 million last year. The percentage of loans and leases in arrears hit 4.35 percent, the highest level since the FDIC began tracking it 26 years ago.

    The dismal economy is forcing banks to set aside more money to cover the losses. FDIC Chairwoman Sheila Bair wrote:

    "Deteriorating loan quality is having the greatest impact on industry earnings as insured institutions continue to set aside reserves to cover loan losses. Of all the major earnings components, the amount that insured institutions added to their reserves for loan losses was, by far, the largest drag on industry earnings compared to a year ago."

    This month the FDIC began changing the way it rescues banks. Typically, regulators let the FDIC take the worst of a bank's losses and fire-sale the assets to a healthy bank, which takes over. Now regulators using "clawback" provisions that require the incoming owner to share future profits with the FDIC. The FDIC may also ask for a bailout of their own -- the agency can borrow up to $500 billion from the Treasury. "A decline in the fund balance does not diminish our ability to protect insured depositors," Bair said in the press release.
  2. clacy


    Printing Press = FDIC safety regardless of how underfunded they are.
  3. ipatent


    Not necessarily true.
  4. the1


    Of course it is safe. Deposits are backed by the FDIC, which is backed by the full faith and credit of the US Government. Ummm....ok, maybe there is a problem here.

    The current monetary system will eventually collapse. We know it and the government knows it. It will be replaced by a one-world currency and everyone will hit the reset button. Be sure to get rid of your debt before that happens because it will still be there. Oh, and all that money under your mattress? Yeah, that'll be worthless. If it's not in the bank it won't get converted. They gotcha by the balls :mad:
  5. Well, I am converting all USD assets into EUR on a daily basis and put them with AAA European banks.

    I don' t trust the Federal Reserve System and the US banking system anymore.
  6. LEAPup


    Probably a smart move!
  7. pt199


    I believe I would put my money in gold and silver rather
    than the EUR! Tell me why I'm wrong?
  8. Ditto....I'm also exchanging out of USD......massive USD depreciation is going to come.
  9. How is it the 30 year old "The greenback is going to collapse overnight" song is getting louder and louder once we enter a downtrend and suddenly becomes very quiet once we enter an uptrend?
  10. S2007S


    Its going to collapse in due time, im not becoming quiet everytime the dollar sees a little uptick.
    #10     Aug 28, 2009