On August 7th I posted some commentary titled “The FDIC Situation.” Here is a story from The Wall Street Journal that does a good job of summarizing the situation there:
One of the statistics of interest:
“The FDIC’s insurance fund, which guards $6.2 trillion in U.S. deposits, fell to $10.4 billion at the quarter’s end, the lowest since mid-1993.”
While there are many variables that will determine the ultimate figure the FDIC may need to cover its guarantee obligations, it seems as if this situation could well become very significant. Many trends and conditions seem to be aiding the possibility of bank failures.
SPX at 1028.93 as this post is written