The FDIC Is Broke - Now What?

08/17/09 • Chris Martenson

et's add up the estimated costs to the Deposit Insurance Fund (DIF), which is the FDIC pool of money toward which banks pay a premium and out of which all bank failure costs are covered. Union Bank: The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $61 million. (Source) Community Bank of AZ: The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $25.5 million. (Source) Community Bank of NV: The cost to the FDIC's Deposit Insurance Fund is estimated to be $781.5 million. (Source) Colonial Bank: The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.8 billion. (Source) All together, that adds up to $3.67 billion dollars in new costs to the Deposit Insurance Fund. The problem is that this turns out to be $3 billion more than currently exists in the Deposit Insurance Fund: