On Friday the 15 and 16, two more failing banks were closed. These closes has required the FDIC, Federal Deposit Insurance Corp, to fund approximately $100.7 million to purchase the assets of these two banks. With the smaller banks failing the government has been forced to bail out the larger ones like Citigroup. “The government has taken control of 36% of Citigroup, which had already received $45 billion from the government.” Will the government have to take more control of the banks to ensure that the money we deposit is safe?
If banks don’t get their criteria for loans tightened this may have to happen to make sure that the population still has faith in the US banking system.