by Bill McBride on 8/27/2008 09:40:00 AM
Wednesday, August 27, 2008
From Reuters: FDIC says IndyMac failure costlier than 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.This is quite an increase in the expected loss.
Diane Ellis, the FDIC's associate director of financial-risk management, said IndyMac's expected hit to the fund blossomed because analysts have had more time to value IndyMac's assets and have assigned some higher loss rates.
Also, some deposits that the FDIC originally thought were uninsured are actually insured, Ellis said.
Posted by Bill McBride on 8/27/2008 09:40:00 AM