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FDIC Remains Financially Strong In the Face of U.S. Debt Concerns
Dear Valued Customer,
The American Bankers Association has advised us to assure you, “our customer”, that the national debt ceiling is completely unrelated to FDIC insurance coverage.
The FDIC is a strong, independent agency fully funded by banking industry premiums, is financially secure and has the resources it needs to protect customer deposits. Eighteen months ago, Washington Savings Bank and all the banks throughout the country paid the FDIC three years of assessments totaling nearly – $46 billion – to assure the agency had the necessary funds to protect insured depositors. It has sufficient cash on hand today to meet its needs for the foreseeable future.
The banking industry remains committed to making sure the FDIC has the resources it needs to protect insured depositors, and this commitment is independent and unrelated to how the debt ceiling discussions are ultimately resolved. The banking industry’s capital – $153 trillion – stands behind the FDIC to assure it remains strong. On July 29, 2011, an FDIC spokesman confirmed the agency’s strong financial position,
“The FDIC’s Deposit Insurance Fund has more than adequate liquidity, currently more than $44 billion, to meet all of our deposit insurance responsibilities,” he said. Note, “The FDIC receives no federal tax dollars toward the insured financial institutions to fund: the Deposit Insurance Fund.”
I hope this news is informative to you, and clears up any issues about this debt ceiling matter. The main thing to remember is that the FDIC is independent and unrelated to the debt ceiling and that the FDIC has the money to protect your deposits since it is funded by the banks and not the government.
Thank you.
Sincerely,
Martin G. Bednarek
President & CEO Washington Savings Bank
