US Banks Are In ICU

Friday, 28 August 2009

US Banks Are In ICU

The U.S. economy can be included in a good location, but banks are still in intensive care. Banks in the U.S. are getting much more expensive for consumers by the government to choose who will live and who is allowed to fail? The number of "problem" banks has increased to 416 from 305 in late March to help drain the disease in the country to deposit funds to their lowest level in 16 years, according to a quarterly progress report yesterday U. S. Federal Deposit Insurance Corp.. (FDIC).

Now the question is will people "is their savings are safe?" The dark count said FDIC Chairman Sheila Bair to reassure Americans that their savings are not at risk. "No matter how difficult the environment, the FDIC has ample resources to continue to protect depositors, we have in the past 75 years." Ms. Bair said firmly. "No insured depositor has ever lost a penny of insured deposits, and never will." He acknowledged that the slow and painful process of cleaning up the bad banks, which have undermined the resources of the FDIC, could last for more than a year after the economy recovers.

Banking crisis is impacting badly and draining the FDIC’s resources as banks fail at a faster rate than it can readily handle. The insurance fund, which protects deposits of up to $250,000 (US) at roughly 8,200 US banks and savings institutions, has dwindled to just $10.4-billion. That’s down from more than $45-billion a year ago, as the FDIC has been forced to set aside funds to handle looming failures. So far, 81 banks have closed their doors this year, including 45 since the end of March. So, these are some very big challenges for the government to resolve and drive their country successfully!