FDIC Looks to Replenish Deposit Guarantee Funds
Submitted by Big Bear on September 18, 2009 – 1:02 pmNo Comment
U.S. bank regulators might tap into a line of credit with the U.S. Treasury in order to help top-up the FDIC funds that guarantees bank deposits.
Federal Deposit Insurance Corp Chairman Sheila Bair said on Friday that the agency would meet at the end of the month to discuss options to rebuild the fund, which has been significantly drained by a sharp increase in bank failures.“We are carefully considering all our options, including borrowing from Treasury,” Bair said, referring to the agency’s $500-billion line of credit with the Treasury Department. She was speaking at a global finance conference in Washington.
