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March 26, 1991
Congress will have to keep its calculators at the ready to determine the huge sums needed to shore up the Federal Deposit Insurance Corp. so commercial banks do not get into an S&L-style mess that leaves taxpayers holding the bag.Only two months ago, when concern escalated about the FDIC's Bank Insurance Fund, the talk was of a cash-flow problem of less than $10 billion. Then, on two successive days last week, the ante went up first by $25 billion and then by $45 billion. Total: $75 billion!
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BUSINESS
By Eileen Ambrose, The Baltimore Sun | July 13, 2010
Two bank failures in a single day last week in the Baltimore region are a stark reminder to make sure your accounts are federally insured. One account at Baltimore's Ideal Federal Savings Bank at the end of March had $602,000 of uninsured money — more than twice the amount of the standard insurance limit, according to banking analyst Bert Ely, who noticed the account on the latest financial reports available from the bank. Ideal and Bay National Bank of Lutherville closed Friday.
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BUSINESS
By Sylvia Porter and Sylvia Porter,1990 Los Angeles Times Syndicate Times Mirror Square Los Angeles, Calif. 90053 | October 9, 1990
The Federal Deposit Insurance Corporation (FDIC) has been losing money and a few days ago announced that the decline in the fund for the year may reach $3 billion. A good way to protect the FDIC, some observers have been suggesting, would be to reduce the amount of depositors' money that is protected.It's a good notion, if you're a banker. But what would it mean to depositors?* As a depositor, you would need to study your bank's balance sheets quarterly to determine (if you can) how secure it is.* You would have to follow changes in bank accounting rules -- and learn what the Federal Reserve Board is telling banks to write off.* Many of you would take your money out of the banks, cutting down on the nation's supply of capital.
BUSINESS
September 30, 2009
PSC to meet again over Constellation-EDF deal The Maryland Public Service Commission is scheduled to meet again Friday with parties involved in Constellation Energy Group's proposed nuclear joint venture with French utility Electricite de France. The PSC met Tuesday for an additional evidentiary hearing on the transaction after the Maryland attorney general criticized Constellation for waiting until the close of the hearings last week before disclosing the final terms of the transaction.
BUSINESS
By Chicago Tribune | September 18, 1990
WASHINGTON -- The House, acting with unusual urgency, approved a measure yesterday that would permit the Federal Deposit Insurance Corp. to boost insurance premiums banks pay to the fund that backs deposits at commercial banks.A nearly identical bill has been introduced in the Senate by its Banking Committee chairman, Donald Riegle, D-Mich., and could come to a vote as soon as late next week.Congress was spurred to act by two government studies last week that warned that the bank insurance fund was in danger of running out of money if even one big bank failed.
BUSINESS
By Stephen Labaton and Stephen Labaton,New York Times News Service | March 24, 1991
WASHINGTON -- The government's senior auditor sharpl criticized last week the administration's proposal to bolster the dwindling bank insurance fund by extending its borrowing authority to $70 billion.Charles A. Bowsher, the comptroller general, said extending the fund's borrowing ability was an unrealistic to handle the growing crisis that would "ultimately hurt the administration's credibility.""I've been through taxpayer bailouts before, and this is how they often get started," Mr. Bowsher said Friday, referring to the savings and loan bailout.
BUSINESS
By Stephen E. Nordlinger and Stephen E. Nordlinger,Washington Bureau of The Sun | February 1, 1991
WASHINGTON -- The Bush administration will be calling next week for a strict limit of $100,000 per person for federal deposit insurance coverage on bank accounts, officials said yesterday.As the chief of the Federal Deposit Insurance Corp. disclosed that the insurance funds would be nearly exhausted by the end of the year, administration officials said President Bush's plan to revamp the bank laws will ask Congress to limit coverage to $100,000 for any combination of insured checking and savings accounts.
BUSINESS
By Knight-Ridder News Service | April 4, 1993
What could be safer than money in the bank? In most cases, nothing.But each year, consumers lose millions of dollars in uninsured deposits -- that is, amounts above $100,000 -- after their banks fail. And those losses have been growing in recent years, according to the Federal Deposit Insurance Corp., the government agency that insures bank deposits.When banks fail, uninsured deposits may be seized by the FDIC. The agency uses that money to help cover the costs of those failures.So how can you avoid losing money?
BUSINESS
By Los Angeles Times | September 28, 1990
WASHINGTON -- The board of directors of the Federal Deposit Insurance Corp., concerned about the deteriorating health of the banking system, voted yesterday to raise by more than 60 percent the deposit insurance premiums commercial banks must pay.The unanimous vote by the five-member board to raise the premiums for next year to 19.5 cents per $100 of deposits came after an FDIC report yesterday showed that the government's bank insurance fund is suffering greater...
BUSINESS
By New York Times News Service | September 27, 1990
WASHINGTON -- The Bush administration said yesterday that restrictions should be placed on insurance coverage of deposits at banks and suggested that the insurance premiums paid by the banks be pegged to the risk involved in their investments and loans.In presenting the administration's latest views before the Senate Banking Committee yesterday, Treasury Undersecretary Robert R. Glauber said that the current level of deposit protection, $100,000 per account, should not be lowered.But he added that the government should close loopholes that permitted virtually unlimited coverage through multiple accounts held by individuals, pension funds and institutions.
BUSINESS
By EILEEN AMBROSE | January 20, 2009
FDIC insurance provides more protection this year Federal Deposit Insurance Corp. was created during the Depression to restore confidence in banks. Last year, with some of the largest bank failures in history, the FDIC's insurance protections on bank accounts got a substantial boost. The basic insurance limit in October was raised from $100,000 to $250,000. This increase, though, is temporary and expires at the end of this year. (Similarly, credit unions temporarily raised their insurance limits.
BUSINESS
By DAN THANH DANG and DAN THANH DANG,dan.thanh.dang@baltsun.com | October 9, 2008
T he Q: If anyone thought that the $700 billion financial rescue plan passed by Congress and signed by President Bush would calm the public's fears, think again. It has only generated more concerns. One part of the measure, which raises the ceiling on federally insured bank deposits to $250,000 from the current $100,000, was particularly worrisome to reader Lee Comeau. For those who aren't aware, banks pay a premium to the Federal Deposit Insurance Corp. for deposit insurance coverage.
BUSINESS
By EILEEN AMBROSE | August 3, 2008
Three bank failures in three weeks. More are expected this year. Could your institution be next? Not likely. Most banks and credit unions are financially sound. And given the improvements to deposit insurance, Marylanders won't have to relive the panic of the 1980s when the Old Court Savings & Loan failed and took with it the state's private deposit insurance system. Still, the recent headlines and the run on IndyMac Bank - which last month became the third-largest bank failure in U.S. history - don't inspire much confidence.
BUSINESS
By Andrew Leckey and Andrew Leckey,Tribune Media Services | April 1, 2007
I am counting on my AT&T Inc. stock. Will it hold up its end of the bargain? - R.M., via the Internet The company's voracious $86 billion acquisition of BellSouth Corp. expands its holdings into the Southeast and achieves full ownership of Cingular Wireless LLC. Keep in mind that AT&T used to be called SBC Communications Inc. until two years ago, when it adopted the new name after buying AT&T's long-distance business. The expansion occurs at the same time it is significantly upgrading its local telephone network.
BUSINESS
By EILEEN AMBROSE | March 12, 2006
The federal insurance limit for retirement accounts at banks will more than double to $250,000 this year - just in time for retiring baby boomers. The increased coverage will apply to accounts such as Keoghs, individual retirement accounts and individual 401(k)s. The new limit could kick in as early as next month, although it will be in place in November at the latest. "Our hope is to make it before the April 15 date because many banks really encourage additional contributions through IRAs and rollovers before the tax date," said Jim Chessen, chief economist at the American Bankers Association.
BUSINESS
By BLOOMBERG NEWS | August 10, 2000
WASHINGTON - The Federal Deposit Insurance Corp. kicked off a wide-ranging debate yesterday about revamping deposit insurance by asking whether to increase the $100,000 insurance limit or charge higher premiums to riskier banks. The deposit insurance system, though operating well, has structural problems that require banks "to fund insurance losses when they can least afford it," FDIC Chairwoman Donna Tanoue said. In addition, some banks have complained that the bank and thrift deposit insurance funds are over-funded, with reserves at $40 billion, and have called for rebates.
BUSINESS
By Knight-Ridder News Service | March 8, 1991
WASHINGTON -- The General Accounting Office said yesterday that the Treasury Department's banking reform proposal may hurt the deposit insurance fund by placing too much emphasis on making U.S. banks internationally competitive.The Treasury's proposal would give banks powers to underwrite securities and enter related businesses to enhance their ability compete on the world market.However, the congressional investigative agency warned that "the more competitive markets get, the more tempting it becomes for banks to abuse expanded powers and attract federally insured deposits to take greater risks in attempts to gain market share or higher profits."
BUSINESS
By Peter H. Frank | September 22, 1991
Bank depositors all know they are protected up to $100,000 per account. For many, that's the only piece of security they have as they watch the banking industry writhe through wrenching losses and pending mergers.But what happens if the dwindling Bank Insurance Fund, or BIF, runs dry?"When we run out of money, we can print some more," quipped Caryl A. Austrian, a spokeswoman for the Federal Deposit Insurance Corp., the agency that oversees the insurance fund.The most recent projection from the FDIC is that the fund balance will fall to between $1 billion and $3 billion by the end of the year, depending on the size and number of bank failures in the next few months.
BUSINESS
By BLOOMBERG BUSINESS NEWS | November 8, 1995
WASHINGTON -- More than 90 percent of the nation's commercial banks could pay no federal deposit insurance premiums in 1996 under an agreement reached last night by U.S. lawmakers.The agreement reached by members of the House and Senate Banking Committees would prevent the Federal Deposit Insurance Corp. from holding reserves equal to more than 1.25 percent of the $1.9 trillion in deposits it backs. The banking package, which now goes to the respective budget committees for inclusion in the overall budget-reconciliation bill, includes $4.8 billion in savings over seven years.
BUSINESS
September 6, 1995
Banks get $1.5 billion from FDICThe fund that insures depositors at failed banks -- in the red just a few years ago -- was fully replenished at the end of May as bank failures remained at low levels, regulators said yesterday.The Federal Deposit Insurance Corp. said that as a result it will give banks a $1.5 billion refund. That includes $1.49 billion to cover excess fees banks paid for deposit insurance from June through September, plus $19.1 million in interest.Last month, the FDIC slashed the premiums most banks pay to insure deposits by 83 percent, a move that could save the industry $4.4 billion a year.
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