The government reported about $4 billion in profits from its investments in eight of the largest banks that have repaid their loans from the TARP program. This is good news for a financial system that was in crisis just a year ago.
However, many smaller banks continue to fail. Three more were announced on Friday bringing the total for the year to 84, and the FDIC’s Deposit Insurance Fund (DIF) is under increased pressure. The DIF’s funds come from fees charged to member banks, but it looks likely that the Treasury is going to have to provide some taxpayer assistance to the DIF. The FDIC can also raise the fee it charges, and this will cause downward pressure in bank margins.
The FDIC is also entering into loss sharing agreements with banks that are taking over troubled banks, and this is another potential area of increased hits in the future.
The government reported about $4 billion in profits from its investments in eight of the largest banks that have repaid their loans from the TARP program. This is good news for a financial system that was in crisis just a year ago.
However, many smaller banks continue to fail. Three more were announced on Friday bringing the total for the year to 84, and the FDIC’s Deposit Insurance Fund (DIF) is under increased pressure. The DIF’s funds come from fees charged to member banks, but it looks likely that the Treasury is going to have to provide some taxpayer assistance to the DIF. The FDIC can also raise the fee it charges, and this will cause downward pressure in bank margins.
The FDIC is also entering into loss sharing agreements with banks that are taking over troubled banks, and this is another potential area of increased hits in the future.
The government reported about $4 billion in profits from its investments in eight of the largest banks that have repaid their loans from the TARP program. This is good news for a financial system that was in crisis just a year ago.
However, many smaller banks continue to fail. Three more were announced on Friday bringing the total for the year to 84, and the FDIC’s Deposit Insurance Fund (DIF) is under increased pressure. The DIF’s funds come from fees charged to member banks, but it looks likely that the Treasury is going to have to provide some taxpayer assistance to the DIF. The FDIC can also raise the fee it charges, and this will cause downward pressure in bank margins.
The FDIC is also entering into loss sharing agreements with banks that are taking over troubled banks, and this is another potential area of increased hits in the future.
Here's yet another local news site aggregator, fwix. The example above is shown for my home base, San Antonio. Give fwix a spin in your town. What's your take? email me: alan at weinkrantz dot com
Debbie Weil Debbie Weil, aka the MonaLisaOfBlogging.com, is a corporate blogging and online communications consultant and the author of the forthcoming "The Corporate Blogging Book: Absolutely Everything You Need to Know to Get It Right" for Penguin Portfolio (2006).
Micro Persuasion Steve Rubel explores how new technologies are transforming marketing, media and public relations at http://www.micropersuasion.com.
Morgan McLintic on PR Morgan McLintic is a vice president at global public relations agency, LEWIS. He lives and works in San Francisco, CA.
Naked Conversations Robert Scoble is Microsoft's best known blogger. Shel Israel is a recovering publicist who writes books, speaks and consults for a living.
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