U.S. bank failures through 2015 will drain $19 billion from the Federal Deposit Insurance Corp. fund for covering losses from shutdowns, the agency said in an update of its reserve ratio projections. The $19 billion figure reported by the FDIC Tuesday is a decrease from the estimated $23 billion needed to cover bank failures in 2010, reflecting both the slowing rate of bank shutdowns and the impact of assessment increases imposed by the FDIC to bolster the Deposit Insurance Fund.
The fund, pushed into deficit by the wave of failures stemming from the 2008 credit crisis, turned positive as of June 30 after seven consecutive quarters of negative balances.
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