Now, From The "Are These People F'ing Idiots" Department.

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Oh goody, the FDIC is running out of money! The banking industry is struggling, more banks are going to fail. So where do you think we’re going to get the money to help sustain the FDIC to prevent it from draining the money well dry? You guessed it, from healthier banks.

The FDIC last week approved a one-time “emergency” fee and other assessment increases on the [banking] industry to rebuild a fund to repay customers for deposits of as much as $250,000 when a bank fails. The fees, opposed by the industry, may generate $27 billion this year after the fund fell to $18.9 billion in the fourth quarter from $34.6 billion in the previous period, the FDIC said.

Smaller banks are outraged over the one-time fee, which could wipe out 50 percent to 100 percent of a bank’s 2009 earnings, Camden Fine, president of the Independent Community Bankers of America, said yesterday in a telephone interview.

“The FDIC realizes that these assessments are a significant expense, particularly during a financial crisis and recession when bank earnings are under pressure,” Bair wrote. “We did not want to impose large assessments when the industry and economy are struggling. We searched for alternatives but found none better.”

Just a suggestion – Search Harder!!!

The war on business continues.

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