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FDIC Report: "We Were Broke And Getting Broker"

 

FDIC Report: “We Were Broke And Getting Broker”

Posted by Karl Denninger

Amazing…

700 troubled banks is bad, and far worse than 552 last quarter.

But the $20.9 billion loss in the deposit fund, after losing $8.2 billion last quarter, is beyond bad and well into the psychotropic medication range.

Remember that the Deposit Insurance Fund went negative last quarter.  Now it has lost another $20.9 billion.

What does the FDIC say?

The agency hopes to make up that loss through advance payments by banks of $45 billion in fees

There’s that “hope” word again.

Oh, once you’ve prepaid your fees, what happens if the losses continue?  Can’t collect the same fee more than once, right?

That’s what I thought.

“Each account insured to at least $250,000 through 12/31/2013 – so long as we can continue to borrow money from Treasury to pay you.

They leave that last part of the sentence out, of course.

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