Federal Bank Insurance Fund
1990-12-17T09:29:37-05:00https://ximage.c-spanvideo.org/eyJidWNrZXQiOiJwaWN0dXJlcy5jLXNwYW52aWRlby5vcmciLCJrZXkiOiJGaWxlc1wvMDgwXC8xOTkwMTIxNzA5NDcwMTAwMl9oZC5qcGciLCJlZGl0cyI6eyJyZXNpemUiOnsiZml0IjoiY292ZXIiLCJoZWlnaHQiOjUwNn19fQ==Mr. Seidman, chairman of the Federal Deposit Insurance Corporation, predicted on December 16 that 1991 and 1992 would be the worst years ever for the financially troubled banking insurance program. Mr. Seidman testified that he believed an assessment from all banks belonging to the FDIC program would be necessary to strengthen the program’s ability to protect deposits at failed banks. The assessment would total $25 billion, to be paid by the banking industry, and banks' contributions to the program would be raised 18 percent. Mr. Brumbaugh opposed such an assessment, due to many banks' inability to survive a one percent assessment, and instead advocated a one-time borrowing from the Treasury Department of up to $50 billion. Mr. Litan advocated either an assessment or Treasury borrowing, but said the assessment may cost an additional $3 billion to $8 billion because of subsequent bank failures.
Mr. Seidman, chairman of the Federal Deposit Insurance Corporation, predicted on December 16 that 1991 and 1992 would be the worst years eve… read more
Mr. Seidman, chairman of the Federal Deposit Insurance Corporation, predicted on December 16 that 1991 and 1992 would be the worst years ever for the financially troubled banking insurance program. Mr. Seidman testified that he believed an assessment from all banks belonging to the FDIC program would be necessary to strengthen the program’s ability to protect deposits at failed banks. The assessment would total $25 billion, to be paid by the banking industry, and banks' contributions to the program would be raised 18 percent. Mr. Brumbaugh opposed such an assessment, due to many banks' inability to survive a one percent assessment, and instead advocated a one-time borrowing from the Treasury Department of up to $50 billion. Mr. Litan advocated either an assessment or Treasury borrowing, but said the assessment may cost an additional $3 billion to $8 billion because of subsequent bank failures. close
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- Dan Brumbaugh Jr. Senior Fellow Stanford University->Center for Economic Growth
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