Just received a notice regarding the low level of the FDIC insurance fund (see below). It seems most credit union CEO's I have worked with this year hold the belief that the NCUSIF will run into similar issues - and once again hit the industry with an assessment. Here's hoping that won't happen, but given the overhang of delinquencies and earnings issues how can it not?
The Federal Deposit Insurance Corp.'s fund that protects more than $4.5 trillion in U.S. bank deposits fell to just $10.4 billion at the end of June, as the banking industry continues to struggle with souring loans and regulators brace for pain in trying to clean up the mess.
The level of the FDIC's fund, the lowest since the savings and loan crisis, almost guarantees that the government will have to hit the banking industry with another special fee to recapitalize its reserves. The agency said it had 416 banks on its "problem" list at the end of the second quarter, up from 305 at the end of March.
-Wall Street Journal
http://online.wsj.com/article/SB125137695691263385.html?mod=djemalertNEWS
