Serious Financial Issues with FDIC Failed Bank List
There are several banks all over United States and every month, there are also several banks that entered FDIC failed bank list. In October alone, there are about twenty failed banks in the FDIC list. What does it mean when you say failed bank? It only means that the bank has failed to pay its debts, so if it does not meet its obligation to its depositors and creditors, this is when this bank enters the failed bank category. During the financial crisis in 2008, there are several banks that failed to meet these obligations leading to closure. In cases like this, FDIC is responsible in handling file claims from depositors. FDIC also provides information regarding the acquiring bank so that the failed banks clients can file for necessary claims.
In 2010 alone, the Troubled Asset Relief Program that was assigned by former President George Bush for critical support such as financial crisis used up $700 billion to bail out the banks in the FDIC failed bank list, which were affected by the financial crisis. This entire lump amount was derived mainly from the taxpayer’s money. When the Congress and media examined the true cost of the bail out for these failed banks, it has been discovered that the $700 billion is just part of the much larger financial need that has to be bailed out by the taxpayers to rescue the economy of the United States.
The Federal Deposit Insurance Corporation insured about $4.4 trillion for the banks included in the FDIC failed bank list. Until now, there has been a debate regarding the real cost of the bailout spent by the government to save the staggering economy and banking problems of the country. There had been speculations that the range of bailout is between $4 trillion to $23 trillion. In Bloomberg news, it was stated that at one point the government had expended about $12.3 trillion.
As of this month November, there are currently three banks in the United States that were included in the FDIC list. All American Bank in Des Plaines, Illinois, Mid City Bank in Omaha, Nebraska and SunFirst Bank in Saint George, Utah failed to meet its responsibilities to its depositors and creditors.
For the regular citizens however, they are more concerned of getting their money back from the failed banks and get a decent job so that they can stand again after this financial crisis.