Ever see that sign at the bank that says your deposits are insured up to $250,000?
Well, the fund that insures these deposits has negative $8.2 billion in it.
That’s right. Trillions of dollars in bank deposits backed by less than zero.
Rising bank failures keeping eating up the fund. Click here to see the FDIC’s list of bank failures. It’s a long list.
This is only the second time in FDIC history that it has carried a negative balance.
But don’t worry, the FDIC is asking banks to prepay into the fund for 2010 and, of course, it has a line of credit it can draw upon from the U.S. Treasury. Click here to read the details from Dow Jones Newswires.