Premier Bank, Wilmette, Illinois: $64.1 million.
Covenant Bank & Trust, Rock Spring, Georgia: $31.5 million
New City Bank, Chicago, Illinois: $17.4 million
Metro City Bank, Doraville, Georgia: $17.9 million
Total Cost to FDIC: $131 million
How Much Money Is in The Fund?
“The unaudited DIF balance — the net worth of the fund — rose to $9.2 billion at December 31 from $7.8 billion at September 30… The contingent loss reserve, which covers the costs of expected failures, fell from $7.2 billion to $6.5 billion during the quarter. Estimated insured deposits grew 3.1 percent in the fourth quarter.” (Source)
Banks pay into the fund based on assets. American taxpayers will cover the rest. The above list of banks are small players, yet, 12 months of similar failures would cost 1.5 billion dollars. This is why the FDIC contingent loss reserve fell from 7.2 billion to 6.5 billion in the last quarter of 2011 alone. They spent over a billion in January 2012.
Big Banks Cost Big Money:
FDIC spent almost a billion dollars on failed banks in January of 2012 alone. One of the bigger hits came from Tennessee Commerce Bank. This bank could cost FDIC up to 1.3 billion dollars:
“Tennessee Commerce had $1.2 billion in assets and is the largest bank failure of 2012. The loss to the FDIC Deposit Insurance Fund was $416.8 million.
“The quality of assets at Tennessee Commerce Bank was so poor that the acquiring institution purchased only $203.9 million (17%) of the failed Bank’s assets. The FDIC, which is already holding $30 billion of failed bank assets, got stuck with the balance of $854 million of junk loans to be disposed of later.” (Source)
The Elephant in the Room:
Global Derivatives exposure is estimated at 1,000 trillion dollars. It could be double that. No one really knows. Bank of America and JP Morgan transferred 70 trillion dollars of derivative exposure to their FDIC insured accounts. This is a move towards insolvency that cannot be ignored.
Ron Paul’s audit of the Fed disclosed an additional 34 trillion dollars in Federal Debt, add this to the 15 trillion currently being reported. Then add this to the liabilities we will incur when JP Morgan and Bank of America go under. The total will exceed 119 trillion dollars.
The United States Gross Domestic Product is only 14.5 trillion dollars. This means if every penny from what we produce as a nation was applied to the national debt and FDIC future liabilities with just two major banks, it would take us 8.2 yearsto pay it off.
Hyper-Inflation is Coming:
Like the Weimar Republic, the Federal Reserve will start printing massive amounts of paper Federal Reserve Notes (dollar bills). Printing enough to cover 119 trillion dollars. The Federal Reserve states there are 1.1 trillion dollars currently in circulation. (Source) An additional printing of 70 trillion dollars to handle FDIC obligations would bury the dollar and trigger hyperinflation. Image a dollar cut in half 70 seperate times and you will get the picture.
It will happen. The only question is when.
Precious Metals the Answer:
Once again we are forced to conclude that it is time to convert those dollar-denominated assets, like stocks, bonds and CDs, into precious metals. I had the foresight to see this coming years ago, and established Drockton Bullion to meet the needs of my clients. Savings and Checking accounts will also be hyper-inflated away when these bank failures hit the system. It could happen after the November elections. By then, all precious metals reserves will be exhausted and prices will rise exponentially.
I don’t exactly when, but the day of judgment for the dollar is close at hand.