Failed Bank List

[FarCenter]

Source: FDIC

Bank Name                            City        State
Irwin Union Bank, F.S.B.             Louisville  KY  
Irwin Union Bank and Trust Company   Columbus    IN 


The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for both institutions will be $850 million.

Read more: http://www.fdic.gov/bank/individual/failed/banklist.html

[nc4bo]

1. How does the FDIC remain solvent?

Better question: How will they remain solvent?

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2. By levying special assessments on the deposits of all the other banks

The night is still young. Mountain and Pacific time zones may have more closures.

[FarCenter]

3. Or by borrowing the money from the government

FDIC Considers Borrowing From Treasury to Shore Up Deposit Insurance

By JESSICA HOLZER
WASHINGTON -- Federal Deposit Insurance Corp. Chairman Sheila Bair said Friday her agency may tap its $500 billion credit line with the U.S. Treasury to replenish its deposit insurance fund, though she appeared cautious about doing so.

"We are carefully considering all options" including borrowing from the Treasury, Ms. Bair said Friday after a speech in Washington.

Ms. Bair has already warned banks that they may face an assessment increase to bolster the fund. Friday, she said there are also other little-known options available to the agency, including requiring banks to prepay assessments. The FDIC board of directors will meet at the end of this month to consider how to replenish the fund, she said.

Ms. Bair appeared cautious about resorting to the Treasury credit line, saying there are different views on when it should be used. She said some believe it should be reserved for emergencies only, rather than for covering losses that are already known.
<SNIP>
http://online.wsj.com/article/SB125328162000123101.html

[UpInArms]

4. FDIC to consider ways to replenish deposit fund

http://www.reuters.com/article/businessNews/idUSTRE58H34F20090918?feedType=RSS&feedName=businessNews&sp=true

WASHINGTON (Reuters) - U.S. bank regulators are considering tapping a line of credit with the U.S. Treasury Department and may explore other lesser-known options to replenish the dwindling fund that safeguards bank deposits.

Federal Deposit Insurance Corp Chairman Sheila Bair said on Friday that the agency would meet at the end of the month to discuss options to rebuild the fund, which has been significantly drained by a sharp increase in bank failures.

"We are carefully considering all our options, including borrowing from Treasury," Bair said, referring to the agency's $500-billion line of credit with the Treasury Department. She was speaking at a global finance conference in Washington.

But regulators are still reluctant to tap the line of credit because they want to avoid temporarily using taxpayer money to clean up the banking mess, she said.

Bair said the FDIC also had lesser-known alternatives for replenishing the fund, such as prepayments of assessments on banks and issuing a note. She did not give further details on those options.

Other options include more special assessments on banks. The FDIC has already charged the industry one emergency fee of $5.6 billion this year, and is authorized to levy two more.

Bair said the FDIC would seek comment on these options before making a final decision.

So far this year, 92 U.S. banks have failed, compared with 25 during all of last year and only three in 2007. Those failures have whittled the balance of the insurance fund down to $10.4 billion from $45 billion a year ago. The FDIC is careful to note that it has $42 billion in reserves to handle failures over the next year.

...more...

[notesdev]

7. It's NOT!

They are out of money! The FDIC is running in red ink, they DO NOT HAVE the money to back the guarantee!

Chances are about a million to one that there will not be a massive bailout of the FDIC in the coming months. If only I could buy a stock that rises when the FDIC gets bailed out, I'd have a sure path to riches.

[Po_d Mainiac]

5. 42 states lose jobs in August, up from 29 in July

More green shoots

WASHINGTON (AP) -- Forty-two states lost jobs last month, up from 29 in July, with the biggest net payroll cuts coming in Texas, Michigan, Georgia and Ohio.

http://finance.yahoo.com/news/42-states-lose-jobs-in-August-apf-1171568305.html?x=0&sec=topStories&pos=main&asset=&ccode=

[notesdev]

6. If they told the truth that list would look like this:

Wells Fargo
Citibank
Bank of America
J.P. Morgan
Goldman Sachs
Deutsche Bank

etc. etc. etc.

[wuvuj]

8. 900 banks to go?

http://www.frontlinethoughts.com/article.asp?id=mwo091809


The Hole in the FDIC

And speaking of holes, let's look at a huge one that is looming at the FDIC. Institutional Risk Analytics (IRA) is maybe the premier bank-analyst service in the country. They charge over six figures for their flagship service. Good friend and Maine fishing buddy Chris Whalen runs the show and was kind enough to send me some of his new data, which they have not yet released to the public. You get it here first. (www.institutionalriskanalytics.com)

IRA takes the data from the FDIC and crunches it with their own set of risk parameters. While the FDIC has a little over 400 banks on its current "watch" list, IRA gives 2,256 banks an "F." They project that over 1,000 banks will either fold or be taken over during the current cycle. To date in 2009, a total of 92 banks have failed across the country, compared with 25 for all of 2008, according to the FDIC. 900 more to go. Ouch.