So they're a bit more than 10% over their original range, and STILL haven't come to market with the 'assets'. Watch this number go higher as the market 'values' those assets for sale.

FDIC down to $45 Billion. What are they going to do when WaMu goes down?

FDIC says IndyMac failure costlier than expected
Tue Aug 26, 2008 5:46pm EDT
Trading will never be the same.By Karey Wutkowski

WASHINGTON, Aug 26 (Reuters) - A U.S. banking regulator said the failure of mortgage lender IndyMac Bancorp Inc IDMC.PK will deliver a bigger blow to its insured deposit fund than originally expected.

The Federal Deposit Insurance Corp said on Tuesday it now expects IndyMac's failure in July to cost its insurance fund $8.9 billion, compared with the previous expected range of $4 billion to $8 billion.

The FDIC also said during its quarterly bank briefing that it will soon start widely marketing IndyMac's assets.

"We hope to market it certainly in the third quarter," FDIC Chairman Sheila Bair told a news conference. "I think we're going to be marketing it both as a whole bank as well as in pieces."

Nine U.S. banks have failed this year, including IndyMac, which became the third-largest U.S. bank failure ever. It was one of the 117 problem banks on the FDIC's second-quarter watch list of institutions with financial, operational or managerial weakness that threaten their financial viability.

IndyMac accounted for $32 billion of the combined $78 billion in assets of problem banks on the FDIC's watch list.

The FDIC said its Deposit Insurance Fund fell in the second quarter to $45.2 billion, down from $52.8 billion at the end of the first quarter, due to an increase in bank failures.

The agency oversees the industry-funded reserve used to insure up to $100,000 per deposit and $250,000 per individual retirement account at insured banks. Continued...

Whats another $900M to tax payers. BTW, did you see the one about FDIC having to borrow from the government in future to cover losses? So let me get this straight, I am paying taxes to repay my own money should I lose it... Huh? Gotta love it, like Water Mutt says its either anarchy or just start to give 100% of your paycheck to the gment.

I'm not a banker, so help me out here.

Indymac had insured depositors and ininsured depositors. The bank went under.

The ininsured depositors were promised 50% of their deposits when the bank closed. Why, then, does the FDIC pay out anything?

Shouldn't the uninsured depositors get wiped out before the FDIC pays a dime?