2008-12-24 — cnn.com
The American Banker and Los Angeles Times both report a deal could come any day and the FDIC now says that it expects a sale by the end of the year. No one from the bank was available for a comment on Wednesday.
I guess this comes from the "kinda sorta news" department? T any rate, when this does happen, I just can't wait to see the terms of the deal.
The FDIC fund has fallen to $35 billion as of Sept. 30, a level that will fall even further by the end of this year. The agency considers $50 billion the level necessary to be fully funded.
To try to replenish the fund, the FDIC has raised the premiums it charges banks, effective Jan. 1. The healthiest banks will now pay 12 cents for every $100 of insured deposits, up from only 5 cents. The more troubled banks also saw a rise in their premiums, to 50 cents per $100 of deposits from 43 cents.
But the FDIC estimates that even with increased premiums, it will take five years to replenish the fund to sufficient levels. The FDIC does not want to raise premiums too high at a time when the Treasury Department and Federal Reserve are scrambling to pump money into the banks in order to spur lending.
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