FDIC Head Is A Liar

“The FDIC will never go broke. We are still running at a surplus, our reserves seem to be quite fit for the projected closure activity that we have.”
-Sheila Bair January 15, 2009

“It needs to be emphasized and re-emphasized that these banks are solvent, they’re well capitalized, overwhelmingly. At the end of the 3rd quarter [2008], 98% of all banks are well capitalized, representing 99% of all assets.”
-Sheila Bair January 21, 2009

It’s official: the overwhelming number of bank failures since the onset of the nation’s financial crisis have pushed the FDIC’s insurance fund into negative territory. The agency said Tuesday that its reserve used to protect consumers’ deposits when a financial institution goes under is $8.2 billion in the hole.
-November 27, 2009