FDIC Could Become Insolvent This Year

Quote from makloda:

Unless Geithner pulls a "Lehman" on the FDIC and argues he has no authority :cool:
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I guess if it watches Jim Rogers too much he could. Apparently creating nationwide bank runs, negative 5y treasury yields, sp at 450, gold at $1500 is worth to get rid of this "terrible morality"
 
I was going to put my savings in a short term Treasury Fund at Schwab for safety instead of an FDIC bank account, but all such funds were closed a couple of weeks ago. I am glad that gold is pulling back; it may be the only safe place to put cash.
 
As our right wind friends in the board. They will say let FDIC run out of money and shut down. Yeah, why should the government help FDIC ? Let every one suffer because its their mistake that they put their money in the bank. Geez...
 
the FDIC was at risk of going bust at the end of 2008 so this isnt anything new.

the FDIC going bust isn't as bad as it sounds because the fed can just pump more money into it as others have mentioned.
 
The run on the banking system is going to happen sometime very soon creating a system meltdown never seen before, nothing is going to stop it, they can print all the Fuc$ing money they want and it will prove NOTHING. The system is totally done with......
 
Good heavens, FDIC was bust over a year ago. That's a significant reason why Treasury & Fed have been doing this ridiculous half-measure two-step dance around the banking sector.

The premiums charged by FDIC do not cover the true risk of default, and never have. Everybody with a savings account has been living on what is effectively a subsidy.
 
Quote from anotherhawkeye:

They will say let FDIC run out of money and shut down.
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The problem with FDIC is if they charge premiums that actually reflect the true risk of default, savings accounts cannot afford to pay any interest. FDIC coverage is a subsidy from future taxpayers to current savers, plain and simple.

A straightforward way forward would be to limit coverage to $10k or similar amount. That will cover the majority of people without burdening future middle class taxpayers with the cost of protecting the accounts of current upper income earners.

The alternative is massive and tight regulation of the banking sector, which I don't think many of us would support.
 
Don't be silly, the only way the FDIC fails is if the USA fails, a non-zero possibility but still relatively unlikely. The FDIC can be recapitalized at the stroke of a pen. Remember the Fed has printing presses at their beck and call.. I guess we will just have to wait and see who was right, Greenspan (markets will react and adjust if left alone) or Maynard (they won't, at least not without tremendous pain).
 
with today's technology it would be impossible for banks or brokers to lose or steal clients cash deposits.

banks and brokers accounts would be audited daily on margin requirements.

FDIC and sipc really need to increase insurance to 10 million dollars cash and securities to bring confidence to the markets.

futures accounts are supposed segragated meaning brokers have no access to clients cash. I guess futures traders know the risk of letting someone have keys to your cash.

and no need for FDIC or sipc


Quote from MrDODGE:

This could be catastrophic.

http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=alsJZqIFuN3k
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