FDIC $8B in the red, 8,100 banks remain extremely vulnerable to failure…. The FDIC has been funding its recent closures of banks by spending the money it had set aside to deal with future loan losses for banks that have already been taken over. The FDIC really really doesn’t want to borrow money from the US Treasury, as that empowers Tim Geithner to run the FDIC’s activities.
As fast as the FDIC is working to shut failed banks, they’re losing ground. At the end of June, there were 416 “troubled banks”… at the end of September there were 552
