Tuesday, August 26, 2008

Stay Calm

Bad news from ABC:

The health of U.S. banks is quickly deteriorating, and the government fund set up to protect depositors might not have enough money to insure everybody, analysts told ABCNews.

The number of banks on a key FDIC watch list for failure has grown from 90 to 117 banks. The government insures deposits of up to $100,000 but will it have enough money to insure everybody?

The Federal Deposit Insurance Corporation, or FDIC, insures bank deposits of up to $100,000 at nearly 8,500 of the nation's banks and also keeps a watch list of banks that it considers in trouble.

Thanks to a collapsing housing market and a weak economy, a growing number of banks are struggling to stay afloat, with not enough cash on hand to cover losses from bad loans.

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