FDIC Fund Falls to $10.4B as Banks Struggle

Government will likely have to charge bank fees to replenish it
By Kevin Spak,  Newser Staff
Posted Aug 27, 2009 11:02 AM CDT
In this Sept. 17, 2008 file photo, Federal Deposit Insurance Corp. (FDIC) Chairwoman Sheila Bair reviews her notes on Capitol Hill.   (AP Photo/Haraz N. Ghanbari, file)
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(Newser) – The FDIC's fund for protecting bank deposits fell in June to just $10.4 billion—the lowest balance since the savings and loan crisis—all but ensuring that the government will have to levy new fees on banks to replenish it, the Wall Street Journal reports. The fund topped $45.2 billion a year ago, before the financial crisis wreaked havoc on the banking industry.

Chairman Sheila Bair urged calm. “The FDIC was created specifically for times such as these,” she said. “The FDIC has ample resources to continue protecting depositors.” The agency also announced that it now has 416 banks on its “problem” list, up from 305 at the end of March. Those banks are considered at high risk of failure and face tougher regulatory scrutiny.