Lots of news out of FDIC these last two days. Yesterday they announced rules for private equity investors that want to buy failed banks. They also extended the “temporary” insurance program for transaction accounts to June 30th of 2010. This program insured $736 billion as of June 30th.
Today was the quarterly banking profile. I’ll have more on that in a column later on. In the meantime, here’s Sheila Bair’s slide presentation…
Slide 11 is interesting. It shows the liquidity profile of the deposit insurance fund. There was $21.6 billion of cash and Treasuries available to fund failures as of June 30th, but that could be eaten up by expected failures. If FDIC isn’t able to sell received assets for cash fairly quickly, they may have to draw down their credit line at Treasury.
(For easier reading, click “toggle full screen” top-right and then “+” to zoom in)