FDIC backing 8,000 banks with $13 trillion in assets and a negative deposit insurance fund. FDIC survey finds millions of U.S. households are underbanked. Too big to fail banks add branches and grow even bigger.

Posted: 07 May 2010 12:19 PM PDT
MyBudget360.com




The FDIC has a big problem on its hand. Some would say it is a too big to fail problem. The Federal Deposit Insurance Corporation looks over 8,000+ banks and protects the deposits at these banks. Yet this seemingly large number is merely a front for where the assets are congregated. The top 4 banks of Bank of America, JP Morgan Chase, Wells Fargo, and Citibank make up 55 percent of all banking assets. This number is absolutely large. FDIC backed institutions have $13 trillion in total assets. Even yesterday as Wall Street demonstrated the dangers of concentrated power in a few big investment banks, rumors were flying around that some of the bigger banks made sizeable gains in their trading portfolios. This brings up many questions for average Americans who are under the impression that their bank is actually keeping their money safe and sound instead of placing major bets on the stock market.



Yet the major bets will continue because during the news heavy day, what wasn’t reported through the mainstream media was how the too big to fail amendment failed in the Senate.

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