Banking Crisis: FDIC Loses $25 Billion in 1 Year and is Broke

Posted on October 27, 2010

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With talk of quantitative easing round 2 (or QE2 for short), the potential government bailouts of Fannie Mae and Freddie Mac, and mounting problems with state finances, government pension funds, and funding for social programs all coming to a boil ahead of this election season, one thing seems to be abundantly clear: there is much more federal spending still to come.

Hundreds of billions more. As if that list of problems and that pile of (soon to be freshly printed) money weren’t enough, it seems we’re not done footing the bill for the colossal stupidity of the banking sector that was supposed to have been wiped clean in round one.

This time, again, it’s an agency whose charter is supposed to be to insulate citizens from the inevitable failure of a handful of banks each year, the Federal Deposit Insurance Corporation (FDIC). And according to their most recent financials for the organization’s primary operating vehicle, the Deposit Insurance Fund (DIF), they are not just due to go broke like many have predicted, they are broke already.

As of June 2010, the bottom line is that the FDIC is in the hole $15 billion

via FDIC Loses $25 Billion in One Year | FINANCIAL SENSE.

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