Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Bank collapses push FDIC fund over 8B into the red
WASHINGTON (11/25/09)--The net worth of the Federal Deposit Insurance Fund during the third quarter of fiscal 2009 declined to negative $8.2 billion, the Federal Deposit Insurance Company (FDIC) reported on Wednesday. This is the third time since 1992 that the net worth of the fund has fallen below zero, and the loss reflects a contingent loss reserve of $38.9 billion that the FDIC has “set aside to cover estimated losses over the next year,” according to the FDIC. The National Credit Union Administration (NCUA) also reported on the status of its own insurance fund at its recently held November meeting. While the National Credit Union Share Insurance Fund (NCUSIF) remains well capitalized at 1.28% of insured shares with over $8.3 billion in total equity as of Oct. 31, the agency estimated that an NCUSIF assessment in the range of 0.10% and 0.25% of insured shares could be sought in 2010 to replenish projected expenses. Melinda Love, NCUA director of examination and insurance, recently predicted that NCUSIF losses for the coming year could range from $450 million to $1.68 billion. The FDIC also reported that the number of institutions on its "Problem List" rose to 552 as of Sept. 31, the highest level since 575 institutions were reported in late 1993. These problem institutions accounted for a total of $345.9 billion in assets, according to the FDIC. Fifty institutions failed during the most recent quarter, increasing the number of failed institutions reported during 2009 to 95. "For now, the credit adversity we have been observing for some time remains with us, and we expect that it will be at least a couple of more quarters before we see a meaningful improvement in that trend," Chairman Sheila Bair said. "Despite the challenges, depending on the economy, I am optimistic that if we address these problems head-on we will see clear signs of improvement in bank earnings and lending in 2010," she added.


RSS print
News Now LiveWire
Operation Mis-Modification tabs 6 homeowner scams @FTC, @CFPB http://t.co/xWb4Yuz9z1
10 minutes ago
.@SenatorBegich says @TheNCUA risk-based cap. plan attempts 2 solve problem that does not exist, at expense of those served by CUs. Watch NN
1 hours ago
Target wants stay of discovery in class action suits in data security breach; plaintiffs disagree that it's needed http://t.co/GHqz2S4u5g
1 hours ago
New HUD Sec'y Julian Castro gets warm send-off from San Antonio's @alamofcu MT Thanks for all the hard work. http://t.co/peb8x4GSRq
2 hours ago
.@CUANYtweets initiates call to action to Gov. Cuomo to sign state-chartered #creditunion FOM bill
2 hours ago