Well, the FDIC is now admitting what Remixx World! disclosed. In a recent FDIC memo, the FDIC says that the fund is negative as of September 30, 2009. Actually, it should have said that the FDIC insurance fund was negative as of the Colonial Bank failing on August 14, 2009, and the FDIC had to charge an emergency $5.6 billion fee to stay afloat.
Pursuant to these requirements, staff estimates that both the Fund balance and the reserve ratio as of September 30, 2009, will be negative. This reflects, in part, an increase in provisioning for anticipated failures. In contrast, cash and marketable securities available to resolve failed institutions remain positive.
You can read the rest of the FDIC memo by clicking HERE or checking the embedded document below.