Expect the FDIC to be in dire need of funding when it reports its latest financial health today. Last reported March numbers showed the fund only had $13 billion versus an estimated $70 billion required to cover bank failures through 2013.
The FDIC is caught in a bind since it needs to be careful not to hurt banks further by raising fees, yet at the same time needs to minimize the funding it receives from the taxpayer, for fear of a public backlash.
The meetings will come on the heels of two large bank failures that resulted in multibillion-dollar hits to the deposit insurance fund.
The largest bank failure of the year landed on Aug. 14, when the FDIC announced that Alabama-based Colonial Bank had been closed and its assets sold to BB&T Corp (BBT.N). Colonial had total assets of $25 billion and is expected to cost the FDIC insurance fund $2.8 billion.
This past Friday, the FDIC announced Texas-based Guaranty Bank failed, and that Spain’s BBVA (BBVA.MC) was buying its assets. Guaranty, which had $13 billion in assets, drained another $3 billion from the insurance fund.
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