There are only $30 billion in FDIC reserves and $9 trillion in deposit in US banks, how does anyone think they are insured?
Thread: There are only $30 billion in FDIC reserves and $9 trillion in deposit in US banks, how does anyone think they are insured?

FDIC Insurance Fund - It Doesn't Actually Exist !
Thread: FORMER FDIC CHAIRMAN CLAIMS "FDIC DOES NOT EXIST"
[link to seekingalpha.com]

When FDIC head Shelia Bair says her agency might have to bolster the FDIC's insurance fund with Treasury borrowings to pay for the new spate of bank failures, a lot of us, this 40-year banking veteran included, assumed there's an actual FDIC fund in need of bolstering.


We were wrong. As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like."