UPDATE: The FDIC Is Broke

There could be a different and unseen reason as to why the FDIC is charging an additional assessment in order to stave off insolvency.

Smaller banks are outraged over the one-time fee, which could wipe out 50 percent to 100 percent of a bank’s 2009 earnings, Camden Fine, president of the Independent Community Bankers of America, said [March 3rd] in a telephone interview.

According to Bill Butler, What is really going [on] is that the Bailout Banks are using the government and its insurance monopoly to help them gain market share by drastically increasing the operating costs of their smaller, better-run and scrappy competitors...Don't be fooled. The real purpose of this do-gooder cover is to bury small banks and allow Bailout Banks to seize market share.