FDIC Insuring 8,200 Banks with $9 Trillion in Deposits and Zero in the Deposit Insurance Fund

The FDIC has greatly underestimated the problems of our nation’s banking system. Earlier in the week the FDIC proposed that banks put up $45 billion to protect bank depositors. The average American must be amazed that a system backing $9 trillion in deposits is essentially broke. Clearly the FDIC has the backing of the U.S. Treasury and Federal Reserve but there is some irony in having the FDIC tell banks to pay an early assessment to protect our money. These banks are going to use bail out money to pay to protect taxpayer deposits! The banking system is going to have some deep and profound issues as the $3 trillion in commercial real estate loans go bad in the next few years. (more)