FDIC Q2 2009 Report Released
The FDIC has released it's Q2 report. The answer to question many of us have been asking , which was basically, "how much cash did the FDIC have left (as of the end of Q2)?" is as follows:
"The Deposit Insurance Fund (DIF) decreased by $2.6 billion (20.3 percent) during the second quarter to $10.4
billion (unaudited)."
This covers the approximately 26 bank failures which occurred during Q2 2009. As of Q2 the reserve ratio had decreased 5 basis points to 0.22%. Given the number of bank failures during Q3, it is probably safe to say the FDIC is approaching the point at which it will have to tap it's emergency line of credit with the US Treasury -- if this has not already occurred without the appropriate fanfare. The emergency line of credit is $100bn, which can be expanded to $500bn on a temporary basis through 2010.
One interesting yet somewhat comical graph is as follows:
Another gem from the report is this:
We can all look forward to another FDIC Friday of Fail -- coming in 24 hours to a media outlet near you.
(5 votes)
on Thu, 08/27/2009 - 09:59
#49874
How does it still have 10 billion + when from the bank failure data, they should have tapped that treasury line by now?? More fudged accounting I dare say!
on Thu, 08/27/2009 - 11:33
#50104
More like Accounting 102 ... from the report:
"Accrued assessment income from the regular and the special assessment increased the fund by $9.1 billion. Interest earned, combined with realized gains on securities and debt guarantee surcharges from the Temporary Liquidity Guarantee Program added $1.1 billion to the fund. Unrealized losses on available-for-sale securities combined with operating expenses reduced the fund by $1.3 billion."
So they had $10.2 billion of income.
on Thu, 08/27/2009 - 15:19
#50589
Is that the special assessment to "be collected September 30, 2009"?
on Thu, 08/27/2009 - 10:04
#49883
"The Deposit Insurance Fund (DIF) decreased by $2.6 billion (20.3 percent) during the second quarter to $10.4
billion (unaudited)."
I think the last word says it all.
on Thu, 08/27/2009 - 10:12
#49892
aaaand it's gone! This line is for people who have money in the bank. Please step aside.
on Thu, 08/27/2009 - 12:03
#50173
For those who wonder:
http://www.southparkstudios.com/episodes/220760/?autoplay=false
required viewing and funny.
on Thu, 08/27/2009 - 10:13
#49894
does the problem bank list ever get leaked? i sure like to see that right now.
on Thu, 08/27/2009 - 10:22
#49914
Yes, but you have to be one of Goldmans VIP clients to get the list Thurs. nights.
on Thu, 08/27/2009 - 11:52
#50151
Weiss's weakest banks--new report coming in a few weeks but this is it:
http://www.moneyandmarkets.com/files/documents/X-List.htm#Toc211675100
on Thu, 08/27/2009 - 15:47
#50640
Try this link. Probably the most accurate, since it tries to accurately calculate the bank's leverage ratio. (Which is the criteria regulators allegedly use to determine whether a bank is insolvent)
http://bankimplode.com/list/troubledbanks.htm
on Thu, 08/27/2009 - 10:15
#49899
Unofficial list from public sources: http://www.calculatedriskblog.com/2009/08/problem-bank-list-unofficial-aug-21.html
on Thu, 08/27/2009 - 10:49
#49979
thanks much
on Thu, 08/27/2009 - 10:23
#49918
Here's an "unoffical" list:
http://www.calculatedriskblog.com/2009/08/problem-bank-list-unofficial-aug-21.html
on Thu, 08/27/2009 - 10:50
#49983
thank you also
on Thu, 08/27/2009 - 10:26
#49930
Thanks for the info PM.
http://en.wikipedia.org/wiki/Cascading_failure
on Thu, 08/27/2009 - 10:30
#49937
They say this is the highest number of problem banks since the S&L crisis. The question is: Why isn't it worse? Is it because they've already shut down a lot of banks, which then leave the problem list, when they kept more bad banks on the problem list in the S&L crisis? I guess I'd like to see a column chart showing the problem banks PLUS cumulative failures, or a column chart of problem bank total assets. Bottom line is the problem must be much, much worse than it was then but these numbers make the situation look garden variety.
on Thu, 08/27/2009 - 11:16
#50049
Bear in mind that comparison of the raw data from the era of the S&L crisis with today is a little bit like comparing apples and oranges. There has been a wave of M&A activity in the intervening 15-20 year time period, in part because of the de facto demise of antitrust, and in part because of the repeal of Glass-Steagall.
In sum, each failure today is probably, on average, bigger than the average failure in the S&L era.
I haven't looked at the data in detail so I can't be sure of the magnitude of the effect, but I'm sure it's substantial. But what worries me most are the failures yet to come. And the parabolic blow-off of the loss rates for each new failure.
on Thu, 08/27/2009 - 12:09
#50181
It is worse. It is not the number of institutions failing that count, but the dollar amount. According to a recent William Black (lead S&L regulator) interview at UCLA, the Indy Mac failure alone was a greater dollar amount than the entire S&L debacle!
on Thu, 08/27/2009 - 10:30
#49938
The insanity continues.
What's amazing is that as the dam springs more and more leaks the population still asks those who didn't "see" the last disaster coming if they can see the next one coming.
The answer to the question by the way is that everything is fine with no disaster in sight or projected. Sleep tight and don't let the bed bugs bite.
on Thu, 08/27/2009 - 10:31
#49939
Thanks for the cold water in my face....I needed it.
on Thu, 08/27/2009 - 10:36
#49950
I bet the true number of insolvent banks is about 1,500 - 1,700, not the 750 or so being put out by the FDIC. Bernanke knows this, he cannot let this Bank Falure Friday event keep going on until all of the banks are sold- it could take 6 years. He must bring all the failures to a close at the same time, before the first quarter of 2010 begins. And he must bailout the FDIC for the full cost of the failure. Enter the Treasury- stage right.
on Thu, 08/27/2009 - 11:03
#50017
Thank you, Sir.
on Thu, 08/27/2009 - 11:12
#50048
Guess money really is bull#%** since they can make it whenever they feel like it... now all they do is type digits into a computer...They don't even have to print paper anymore!
on Thu, 08/27/2009 - 11:54
#50132
Has anyone heard even an inkling about Corus in the last week? There were numerous rumors regarding 4 different PE players in early August and then the nothing but dead air. Perhaps they were waiting for Sheila to lower the Tier One on PE takeovers of banks as announced yesterday but Corus is an utter mess. So please share if you have any news other than this from AP today
"Some critics say regulators have taken too long to shut down troubled banks. Chicago's Corus Bankshares, for example, has staggered for weeks under the weight of bad real estate loans."
on Thu, 08/27/2009 - 11:54
#50155
As you point out; this was at the end of Q2. Would that be June 09? That means that we have had some 25 bank failures since then. Can someone add up the total amount?
on Thu, 08/27/2009 - 12:10
#50186
I think it was Mish who declared on August 14 that the FDIC was broke.
on Thu, 08/27/2009 - 12:30
#50220
Yes, Mish was keeping track. My count was -$3bn. The FDIC is definitely broke. They must have tapped the Treasury.
on Thu, 08/27/2009 - 14:47
#50524
Sheila Bair said today that the FDIC had "no immediate plans" to tap the line of credit with Treasury. That's vague enough on timing that they could tap it in a week or two after the next group of bank failures without contradicting her.
However, I don't think she could get away with making that comment if the FDIC had already drawn on the Treasury.
on Thu, 08/27/2009 - 16:31
#50754
It's hard to say... I mean Mish thinks they are bust... my rough count was a few billion short, but that's going off secondary source data so that could be wrong...
1) Maybe there was better recovery than estimated on some of this garbage
2) Maybe they are lying
on Thu, 08/27/2009 - 12:26
#50216
Thanks Project Mayhem,....... for the Sibel Edmonds tip on another post. Great stuff. Evil always present (in everyone) must be constantly vigilant. Good work.
on Thu, 08/27/2009 - 12:31
#50222
There is a whole article coming on Sibel Edmonds once I finish watching the deposition
on Thu, 08/27/2009 - 12:30
#50219
Project Mayhem,......Sibel Edmonds worth writing about,....."this exposed activity" within our government, is rampant in the financial field,.....probably more.
on Thu, 08/27/2009 - 13:57
#50407
Thanks for the article Mayhem...appreciate it very much!! Nice job.
on Thu, 08/27/2009 - 14:36
#50503
Hockey anyone?
on Thu, 08/27/2009 - 18:22
#50960
Here is an article that shows how the FDIC is handling negative ratio banks
http://www.startribune.com/business/52476387.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aUUs
Since both banks are chartered by the state, it's the Minnesota Department of Commerce's call to shut them down, a spokesman for the Federal Deposit Insurance Corp. (FDIC) said.
on Thu, 08/27/2009 - 18:45
#50988
thanks PM
on Thu, 08/27/2009 - 19:57
#51097
It's not really triage at this point. It's more. Ok all you dead banks just keep going until we can officially put you in the grave. It's not going fast enough and they are going to miss stuff with banks having ATM failures and inability to process payments. The FED audit won't set off a bank run but once you get 20 banks from 20 different states all screwing transactions. That'll set off the panic. And as the wind down banks they will have more and more toxic balance sheet percentages.
on Fri, 08/28/2009 - 11:35
#51813
As far as I can see, the 2nd Quarter FDIC Report has not been posted yet at the link you mentioned:
http://www2.fdic.gov/qbp/qbpSelect.asp?menuItem=QBP
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