FDIC May Go Broke

2009-03-06 16:21:12 (GMT) (WiredPRNews.com - Money & Finance, News)

The FDIC may possibly go broke this year

The FDIC is reportedly at risk of going broke this year.

Wired PR News.com – The FDIC could possibly go broke this year. As reported by AFP, the government has warned that escalating bank failures could lead to worsened financial troubles for the Federal Deposit Insurance Corporation (FDIC).

Shelia Blair, who heads the FDIC, reportedly sent a letter to bank executives this week pertaining to their plan to increase fees to help maintain the insurance fund. Blair is quoted in the report as writing in the letter, “Without these assessments, the deposit insurance fund could become insolvent this year… Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative.”

As noted in the AFP report, the FDIC announced last week intentions to impose a temporary emergency fee on lending institutions in order to maintain insurance funds. Fourth quarter losses for the United States corporation were also reported to be approximately 15.6 billion dollars.