The FDIC released the Q2 Quarterly Banking Profile this week. The report showed that the Deposit Insurance Fund (DIF) balance had fallen to $10.4 billion or 0.22% of insured deposits.
Click on graph for larger image in new window.
The graph shows the cumulative estimated losses to the FDIC Deposit Insurance Fund (DIF) and the quarterly assets of the DIF (as reported by the FDIC). Note that the FDIC takes reserves against future losses in the DIF, and collects fees and special assessments - so you can't just subtract estimated losses from assets to determine the assets remaining in the DIF.
The cumulative estimated losses for the DIF are now over $40 billion.
In this Dick Bove interview with CNNMoney, the interviewer Poppy Harlow said:
"When we look at that list though - we don't get the names from the FDIC obviously - only about 13% of the bank on that list actually end up failing".
The 13% number is historically accurate, but that is over the entire cycle - and this down cycle will probably be worse than most. So during this down period, the percentage will probably be much higher. As far as the names of the banks on the "list", most of them are on the Unofficial Problem Bank list.
The FDIC closed three more banks on Friday, and that brings the total FDIC bank failures to 84 in 2009.
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