I was actually pretty confident that the loss estimates were a little low on some of the previous failures. While that didn’t mean that the money had all been spent, it effectively meant the same thing (the money had been allocated). With Colonial last week, some people are betting on a broke FDIC now. I’ve also seen some estimates that give the FDIC a little more money, but the possibility of a big failure this week (Guaranty bank) might wipe that out.
The FDIC has gone broke before during your lifetime (provided you were born before the 90s), it’s not a huge catastrophe. Your deposits are safe. It is something worth tracking, though.
