5 basis point special assessment (1).
Credit Writedowns Mon 2009-09-21 15:32 EDT
Sheila Bair has run out of options to seize banks because the FDIC's coffers are running dry. Now she either needs to tap taxpayer money via a loan from the Treasury or she has to raise funds through a special assessment on banks, who are already capital-constrained.
Mish's Global Economic Trend Analysis Wed 2009-08-26 15:55 EDT
Here is an interesting Email from a Bank Owner and CEO regarding As of Friday August 14, 2009, FDIC is Bankrupt. ``I have been in banking for over 30 years and from my perspective this is much worse than anything I have seen.'' ABO, who as been in the business 30 years, writes: A comment concerning the FDIC - As of June 30 the rates being charged banks have increased substantially. Risk 1 category went to 12 basis points from 5, risk 2, 17 basis points, risk 3, 35 basis points, and risk 5, 50 basis points. Additionally, a 5 basis point special assessment is being charged on September 30 on total assets less tier 1 capital. It is probable that a second assessment will also be charged in December. The cost of FDIC insurance for a two hundred million dollar, 1 risk rated bank last year would have been around...
bank owner; capitalized banks; Email; FDIC; Mish's Global Economic Trend Analysis.
