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Unformatted text preview: $250,000.
This increase came from investors and businesses seeking safety from the EU debt crisis,
taking advantage of the temporary unlimited
FDIC insurance. While this flight to safety was
felt more by the nation’s largest banks, the real
winner was likely the FDIC Deposit Insurance
Fund (DIF) as new deposits likely outweighed
increases in bank equity. This transitory deposit
growth is not expected to stimulate economic
activity, loan growth, or even bank profits as
they are expected to revert to higher interest crediting accounts when the EU debt crisis
calms. • Problem Banks: Problem banks declined in the
third quarter 2011, to 865 banks with assets of
$372 billion, down from 888 banks with assets
of $397 billion at the end of the first quarter.
• The FDIC Deposit Insurance Fund: The FDIC
reported in October that its recapitalization
reaffirms that the banking industry is rapidly
returning to health and that the losses once
expected were overstated as fewer bank closures
were required and those that were closed were
completed at lower costs. These reserve adjustments and expanded premiums gave the fund
its sixth-consecutive quarterly in...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.
- Spring '13
- The Lottery