FDIC Says Deposit Insurance Fund Should Recover by Late 2018
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The Federal Deposit Insurance Corp. fund guaranteeing customer deposits in U.S. banks is rebuilding at a faster pace as bank failures slow from their 2010 peak, the agency said in a report today.
The federal backstop, funded by assessments on banks, was at $11.8 billion at the end of 2011, up from a deficit of $20.9 billion at the end of 2009 as the credit crisis caused banks to fail. The FDIC predicted it will spend $12 billion to cover bank shutdowns through 2016, according to a report updating the fund’s health. That five-year cost is $7 billion less than the FDIC’s last five-year projection in October.