FDIC Has MANY Problems

The FDIC is in trouble. Unfortunately, they have modeled themselves after AIG in that they have insured Trillions of dollars of assets and have nothing to back it up with. The US Treasury has granted them a $500B line of credit but the Treasury is smacking up against the US debt ceiling. Sheila Bair has said publically that that "a few large banks will need to fail" but there is no money to bail them out.

Let's take Citigroup for example who just released their latest earnings disaster with a 4th quarter loss of $7.6B.

http://www.citibank.com/citi/press/2010/100119a.htm

Why in the world ANYONE would keep their money with this bank in beyond me, but they claim to have over $300B in FDIC insured deposits! And that's not all…. the FDIC has also Guaranteed over $300B in Toxic Asset Garbage owned by Citigroup! AND THAT'S JUST ONE BANK!!!

It's Friday again and I highly recommend watching the Friday Night Bank Failures for some high drama tonight. Here's the link:

http://www.fdic.gov/bank/individual/failed/banklist.html