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Article: Reinsurance program could support FDIC.(Federal Deposit Insurance Corp)
- Article from:
- Business Insurance
- Article date:
- September 28, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Regis Coccia
The Federal Deposit Insurance Corp. has insured bank deposits since its formation in 1933. But with more than 100 bank failures in the past year, the FDIC is scrambling to shore up its capital.
On Sept. 29, the FDIC board of directors is scheduled to meet to vote on a resolution regarding a capital restoration plan for the insurer.
With a dwindling capital base and the risk of more bank failures looming, the FDIC needs to do something to improve its finances. But none of the options floated so far appear ideal, according to reports.
Options the FDIC is considering for raising funds include:
* Seeking ...