Massive Bailout Deal Near, Another on the Horizon (FDIC May Need $150 Billion Bailout)

[kpete]

FDIC May Need $150 Billion Bailout as Local Bank Failures Mount •

Massive Bailout Deal Near, Another on the Horizon


The US FDIC, the body created during the Great Depression to ensure bank deposits, may need an additional bailout of at least $150 billion.

As Democrats negotiate the details of the Bush administration's $700 billion bailout plan, a new report from Bloomberg News says that the US Federal Deposits Insurance Corporation - the body created during the Great Depression to ensure bank deposits - may need an additional bailout to the tune of at least $150 billion.

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By the end of 2009, about 100 U.S. banks with collective assets of more than $800 billion will fail, predicts Christopher Whalen, managing director of Institutional Risk Analytics, a Torrance, California-based firm that sells its analysis of FDIC data to investors.

``It's not going to be Armageddon,'' says Mark Vaughan, an economist and assistant vice president at the Federal Reserve Bank of Richmond, Virginia and a senior lecturer in economics at Washington University in St. Louis. ``But it's going to be bad.''

FDIC's Secret List

The FDIC knows which banks are at risk; it has a watch list with 117 institutions. The agency won't disclose their names because doing so could cause depositors to panic and pull out all of their funds.

more at:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abmpGTJ0gRfo
http://www.truthout.org/092508A#1

[1corona4u]

1. That's it. I'm putting my money under the mattress.

Seriously.

[nc4bo]

2. We're screwn. nt

[bullimiami]

3. i think the fdic has like 50 billion on hand to insure like 1.5 trillion in accounts.

[indepat]

4. When one thinks of the god-zillions in bonuses bankers have been awarded for making these bad loans

and the god-zillions investment bankers have been awarded selling these bundled bad loans in the form of CMOs, CDOs, and whatever, it's enough to make you weep. :P