The Outlook for the Fdic's Deposit Insurance Fund
Bank Director › Vol. 19 Nbr. 4, October 2009
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The Outlook for the Fdic's Deposit Insurance Fund
On Sept. 29, the FDIC proposed that banks pump cash into the Deposit Insurance Fund, or DIF, by prepaying $45 billion of deposit insurance premiums. While this prepayment will address the FDICs short-term cash-flow needs, it has heightened confusion about the DIF's financial outlook.
It is important to understand that the FDIC is not an insurance company. Instead, the FDIC merely operates a government guarantee program funded entirely by banks. The DIF balance is...See the full content of this document
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