FDIC May Need $150 Billion Bailout as Local Bank Failures Mount

[Liberal_in_LA]

http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=amZxIbcjZISU

FDIC May Need $150 Billion Bailout as Local Bank Failures Mount

By David Evans

Sept. 25 (Bloomberg) -- Deborah Horn tugs on the handle of the glass-paned entrance of the IndyMac Bancorp Inc. branch in Manhattan Beach, California. The door won't budge. The weekend is approaching, and Horn, 44, the sole breadwinner in a family of three, needs cash.

A small notice taped to the window on this Friday afternoon in mid-July tells her why she's been locked out. IndyMac has failed, the single-spaced, letter-sized paper says; the bank is now in the hands of the Federal Deposit Insurance Corp.

``The Receiver is now taking possession of the Bank,'' the sign says.

``I'm physically shaking,'' says Horn, an academic tutor, as she peers into the bank. Inside, an FDIC examiner is talking to six stone-faced IndyMac employees. ``I don't know when I'm going to be able to get my money,'' Horn says. ``I'm a single mom. This is the money I live on.''

[TornadoTN]

1. Get ready - what we've seen so far is the tip of the iceberg

It's only going to get worse from here - bailout or not. The FDIC is flirting with disaster and that's before the small town banks have started to feel the full effects of the economy.

This is shaping up to be a disaster of epic proportions.

[bushmeister0]

2. The FDIC needs a "rescue." Rescue!

[NeoTheo]

3. What can you say?

This is how a coup works.

[akwapez]

4. so this would be completely separate from the 700bil from today??

[provis99]

6. yep. This bailout would be in addition to the $700 billion.

[dixiegrrrrl]

5. I can't remember the last time we did not have some "just in case" cash on hand.

Living in various disaster zones taught me to think in a whole new way.

And since Bush, the whole country has been one huge disaster zone.