FDIC Insurance Fund Reaches $33 Billion After 2009 Deficit
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The Federal Deposit Insurance Corp. fund guaranteeing customer deposits in U.S. banks is rebuilding at a faster pace as the banking industry puts widespread failures behind it, the agency said in a report.
The federal backstop, funded by assessments on banks, was at $33 billion at the end of 2012, 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 $5 billion to cover bank shutdowns in the next five years, a projection that has been rapidly declining as the industry improves, according to a report issued today updating the fund’s health.