What FDIC Is Doing To Responsible Local Banks
Talked with a President of a successful local bank here in Iowa (rated B+) and asked him about FDIC insurance rates going up as told him I had read the responsible banks are having to foot the irresponsible banks through FDIC rates.
Besides confirming this is true. Here’s some information he volunteered. Until recently, they were paying $250-300K a year to the FDIC. As of today (its very fluid he said and getting worse by the week)…they are expecting the rate to approach or reach $1M. This is a 3-4 times increase.
This is taking up most if not all the profits of responsible banks in this area. Iowa is relatively less impacted compared to most states with unemployment of 4.8 percent but is rising. If a B+ bank is impacted this much…what about others.
He suggested they will have to implement and/or raise fees to customers. He basically said its close to unsustainable long term.
Know him very well, he is a well adjusted, down to earth, all around good and honest guy. Stated all the responsible banks locally here are in the same boat w/r/t impacts.
They are somber and frustrated but they can’t do anything. He appreciated the question, our concern and our local support for their situation.
Will try and ask a couple of other local bank Presidents here…see what their thoughts are. Indirectly, heard similar words from them through third party.
What are other folks finding out about FDIC fees increases impacts to other responsible banks across the country?
How does this fit into current understanding of our strained…if not unsustainable financial system?
This is what I and others have said several times in other posts: rather than letting the system adjust back to local power, local finance, the US govt / Fed syndicate is stripping local wealth to prop up an increasingly powerful centrally-controlled monetary system. This has been the natural evolution ever since the Fed was created. The private owners get super-rich during inflationary growth periods as they take all our interest money, then in deflationary crashes they suck up all the assets…and it’s all legal. This is how the mafia runs restaurants, construction companies, movies, etc. and we call it criminal. But big govt politicians in pretty suits endorse this same system at the national/global level.
Here is the latest answer to the FDIC’s problem. Hey, what’s another 500 billion?