Depository Institutions
FDIC Bank Takeovers in 2010
Policy Area:
Financial Sector Policy
Economic Target:
Depository Institutions
Action Type:
Bank Takeover
Maximum Amount:
$79.87 billion
Amount Spent:
$22.17 billion
Deficit Impact:
$22.17 billion This entry tracks FDIC takeovers of banks in 2010.
Notes:
Although FDIC costs are counted on-budget, official estimates assume that they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount indicates value of all bank deposits. Amount spent represents FDIC-estimated cost to deposit insurance fund.
Fed Payment of Interest on Bank Reserves
Date:
October 6, 2008
Who:
Fed
Policy Area:
Financial Sector Policy
Economic Target:
Depository Institutions
Action Type:
Regulatory Change Federal Reserve will pay interest on depository institutions' required and excess cash reserves. Program originally slated to begin in October of 2011 was moved up to October 2008 because of the financial crisis. Objective is to compensate depository institutions for lost income they could derive by investing reserve funds elsewhere.
Source:
Notes:
Cost of paying interest is unknown. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Raise Limit on Insured Deposits: $100K to $250K
Date:
October 3, 2008
Who:
FDIC
Policy Area:
Financial Sector Policy
Economic Target:
Consumers
Economic Target:
Depository Institutions
Action Type:
Regulatory Change
Maximum Amount:
$700.00 billion The Emergency Economic Stabilization Act of 2008 temporarily raised from $100,000 to $250,000 the amount of deposit and share insurance in FDIC and Federal Credit Union member organizations. Initially, this law stated that the increased limit on insured deposits would last until 12/31/2009. However, On 5/20/2009 President Obama signed the Helping Families Save Their Homes Act, extending the temporary deposit insurance limit of $250,000 untill 12/31/2013. After that date, the FDIC deposit insurance limit will return to $100,000 except for IRAs and other retirement accounts.
Notes:
Limit will return to $100,000 after Dec. 31, 2013. Maximum amount indicates total value of new insured deposits.
FDIC Bank Takeovers in 2008
Policy Area:
Financial Sector Policy
Economic Target:
Depository Institutions
Action Type:
Bank Takeover
Maximum Amount:
$234.00 billion
Amount Spent:
$21.74 billion
Deficit Impact:
$21.74 billion FDIC takeovers of banks in 2008.
Notes:
Although FDIC costs are counted on-budget, they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount represents total value of deposits. Amount spent represents FDIC-estimated cost to deposit insurance fund.
FDIC Bank Takeovers in 2009
Policy Area:
Financial Sector Policy
Economic Target:
Depository Institutions
Action Type:
Bank Takeover
Maximum Amount:
$125.72 billion
Amount Spent:
$36.47 billion
Deficit Impact:
$36.47 billion FDIC takeovers of banks in 2009.
Notes:
Although FDIC costs are counted on-budget, official estimates assume that they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount indicates value of all bank deposits. Amount spent represents FDIC-estimated cost to deposit insurance fund.
