11 Bank Failures Have Driven Deposit Insurance Fund Below the Minimum Target Level Set By Congress
By Associated Press
WHAT’S UP: The federal fund that insures American bank deposits may need a taxpayer-financed cash infusion in the form of a Treasury Department loan.
WHAT GIVES: After 11 bank failures this year, especially the July collapse of IndyMac Bank, the Federal Deposit Insurance Corp. has less in its fund than is required by Congress.
WHAT’S NEXT: All eyes are on Seattle-based Washington Mutual Inc., the nation’s largest thrift, whose deposits would cost billions more to insure if it fails. The FDIC fund currently has about $45 billion, the lowest level since 2003.
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