Bank failures are only going to cost the Federal Deposit Insurance Corp. $100 billion through 2013.
That’s up from the FDIC’s previous estimate of $70 billion. But what’s a few billion when you consider that grandiose risk-taking in Ponzi-like securities and real estate markets is a national pasttime?
Almost sounds like just the bonus money when you consider the trillions that the U.S. Treasury and the Federal Reserve Bank have injected into the banking system.
Click here to read more on the FDIC’s latest estimate. At least the FDIC is asking banks to pony up $45 billion in insurance premiums.
The FDIC, however, may also have to tap a $500 billion line of credit it has with the U.S. Treasury.
So far 95, banks have failed this year on top of 25 last year. This has put the FDIC’s funds at the lowest level since 1992. And with continued double-digit unemployment and a withering commercial real estate market, things could get worse before they get better.