The FDIC is out of money as of this week.
If the FDIC tries to assess banks to raise emergency funds, they’ll push more banks into receivership, or at least make them unprofitable. The FDIC decided today to REQUIRE all banks to prepay their insurance premiums through 2012 to raise cash.
What will the FDIC use for income for the next 2 years after it burns through this cash?
The insurance fee is based as a rate per $100 on deposit – how can a bank prepay a premium when it doesn’t know how much it will owe in 2012?
Don’t let local property tax people think this is legal to do…
Congress has approved allowing the U.S. Treasury to lend up to $500 billion to the FDIC (on top of the $2.5 trillion the FDIC is currently administering for the non-bank emergency bailouts/guarantees). But Tim Geithner wants to control the FDIC and make it play by his rules – as soon as the FDIC takes bailout money, they lose control of their destiny. So the FDIC is looking to borrow money from “good banks” in order to continue the implosion of zombie banks.