FDIC May Need $150 Billion Bailout as More Banks Fail (Update3)
By David Evans
Sept. 25 (Bloomberg) -- Deborah Horn tugs on the handle of the glass-paned entrance of the IndyMac Bancorp Inc. branch in Manhattan Beach, California. The door won't budge. The weekend is approaching, and Horn, 44, the sole breadwinner in a family of three, needs cash. [...]
The IndyMac debacle is taking a large bite out of FDIC reserves, and if scores of other banks fail in the year ahead, the fund will be depleted. Taxpayers will have to step in. [...]
The FDIC is broke based on predictions of bank closures. It needs $150 Billion (billion with a "b") more to fulfill expected obligations.
Okay. Here's what I want you to think about. This is not money the FDIC needs now. It is money it EXPECTS to need. That is right. The FDIC is expecting at least ANOTHER $150 Billion in failed banks.