The agency that guarantees bank deposits said there are no immediate plans to borrow money from the government to bolster its insurance fund.
The fund fell 20 percent, to $10.4 billion in the second quarter, the Federal Deposit Insurance Corp. said. That’s the lowest point since 1992 at the height of the savings-and-loan crisis. Some analysts have warned that the fund could fall below zero by year’s end.
The FDIC estimates bank failures will cost the fund around $70 billion through 2013. Asked about a possibility of tapping the Treasury, FDIC Chair Sheila Bair said: “Not at this point in time. I never say ‘never,’ but not at this point in time, no.”
The FDIC is fully backed by the government, and depositors’ money is guaranteed up to $250,000 per account.
