The Fdic Still May Be Short
More banking woes. The Federal Deposit Insurance Corp. reported on Dec. 10 that bank income hit $4.3 billion in the third quarter, up 17% from a year earlier. But the General Accounting Office told the House Banking Committee that the $70 billion recently approved for the insurance fund that backs the industry could be insufficient. The biggest threat is a collapse of any one of the larger banks not already on the FDIC's sick list. The GAO's gloomy assessment is predicated on the continuation of the sluggish economy and questions about the accuracy of existing bank accounting methods.