Economic Recovery Measures

Six More FDIC Bank Closings

On Friday evening, the FDIC reported that it has taken over an additional six banks (Greater Atlantic Bank, Benchmark Bank, AmTrust Bank, The Tattnall Bank, First Security National Bank, The Buckhead Community Bank) for a cost to the FDIC of around $2.4 billion. This brings the total number of failed banks in 2009 to 130.

Reports Roundup

A number of very interesting and relevant government reports have come out this week. Check them out:

TARP Winding Down as BofA Says It Will Repay Aid

Secretary Geithner recently said that the Administration will outline its exit strategy for TARP in the next few weeks, but the expiration date has still not been set. He recently stated that they were “close to the point where we can wind down this program and stop making new commitments,” but that they were “not quite there yet.”

Stimulus COBRA Subsidies Begin Expiring

Today, federal COBRA subsidies that help unemployed workers purchase health insurance from their former employers begin expiring. February’s stimulus bill provided 9 months in federal assistance, with the government paying 65 percent of a worker’s health insurance extension.

CBO Report Discusses ARRA Effect on Jobs, GDP Growth

The Congressional Budget Office has come out with a report estimating the impact of the American Recovery and Reinvestment Act on employment and economic output. The report estimated the federal stimulus package, in the third quarter, raised GDP by somewhere between 1.2 and 3.2 percentage points higher

FDIC Deposit Fund Turns Negative

Yesterday, the FDIC reported that the deposit insurance fund fell below zero for the first time since the third quarter of 1992 (during the savings-and-loan crisis). The fund balance, as of the end of the third quarter, stands at -$8.2 billion, including the more than $38 billion set aside for projected losses from bank failures over the coming year.

Federal Officials Pressure ‘Pay Czar’ to Ease Pay Restrictions at AIG

Worry about the government’s investment in AIG has prompted some federal officials to call for easing the restrictions on pay at AIG for 2010, the Wall Street Journal reported.

One More FDIC Bank Closing

On Friday evening, the FDIC reported that it has taken over an additional bank (Commerce Bank of Southwest Florida) for a cost to the FDIC of around $24 million. This brings the total number of failed banks in 2009 to 124. Total deposits of all failed banks now equal $115.5 billion for 2009 and over $349 billion since the beginning of 2008, all at an estimated cost to the FDIC of just under $54 billion.

Syndicate content