Sunday, September 14, 2008

FDIC: Closed for Remodeling

Buried in today's New York Times story on the collapse of Lehman Brothers and Merrill Lynch was this distressing bit of news:

And Merrill Lynch is hardly the only troubled financial institution on the horizon. Administration officials acknowledged this week that more bank failures are inevitable, and the main protection for depositors — the Federal Deposit Insurance Corporation — is likely to exhaust the reserves it has built over the years from bank insurance premiums.

After the reserves at the FDIC run dry I'm sure if our home town banks implode with our deposits we can expect to be issued vouchers for repayment in some later decade . Hopefully the middle class will not have any more pressing needs for their cash during the immediate future.

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