Will The FDIC Need to be Bailed Out?

Recently, the Federal Reserve came up with a list of 150 banks that were candidates for failure. From the IStockAnalyst:

Also, of the $53 billion the FDIC has to reimburse consumers of failed banks, IndyMac is estimated to need between $4-8 billion, putting more pressure on existing banks

One medium sized failed bank, IndyMac, needs between 7.5% and 15% of total FDIC funds dedicated to reimbursing customers of failed banks.

Given that there are 150 banks on the list and that this list is missing many potential bank failures as evidenced by the fact that IndyMac was not on this secret list, it is very likely that there are double or triple that amount of banks which are candidates for failure. The FDIC currently does not have sufficient funds to reimburse consumers for future bank failures.

The FDIC will either need a whole bunch of federal money to deal with bank failures or will need to dramatically raise the fees FDIC member banks (for FDIC privileges). By raising fees this puts extra strain on banks, many of whom have shaky financial underpinnings.

In the main, the financial leadership CANNOT be trusted. It is damn scary!