- The Washington Times - Tuesday, September 29, 2009

Federal regulators expect bank failures to cost the deposit insurance fund about $100 billion in the next four years and the fund to fall to a negative balance this month.

That figure is higher than an earlier estimate of $70 billion in failure costs through 2013.

The Federal Deposit Insurance Corp. made the projections Tuesday as its board proposed requiring banks to pay in advance an estimated $45 billion in regular insurance premiums for 2010-12.

“I do think this is a good balance,” FDIC Chairman Sheila C. Bair told reporters.

The plan requires the banking industry “to step up” while spreading the financial hit to banks over a number of years, she said.

Copyright © 2019 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide