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FDIC moves on 100 insolvents

Run on banks! FDIC moves on 100 insolvents
Feds borrowing from China to close U.S. financial institutions

The number of bank failures has passed 100, a dramatic increase from this time last year when the number of failed banks numbered 64, Jerome Corsi’s Red Alert reports.

So far this year, the FDIC has taken over 103 insolvent banks, at an estimated cost of $431 billion.

Although the FDIC fund grew by $145 million during the first quarter of 2010, the first increase in two years, the FDIC was still operating $20.7 billion in the red.

“The inevitable conclusion is that with a $1.5 trillion Obama administration federal budget deficit likely for fiscal year 2010, the FDIC is borrowing from China to close banks in the United States,” Corsi wrote.

The U.S. Treasury reported at the end of April that China held $900.2 billion in U.S. Treasury debt among its $2.45 trillion stockpile of foreign exchange reserves, the largest ever held by any nation.

China’s holdings of U.S. debt are now so extensive that last week China’s State Administration of Foreign Exchange felt compelled to come forward to assert that China would not use the “nuclear option” to dump U.S. Treasuries in a move to damage the U.S. economically.

Greg Hunter at USAWatchdog.com now safely predicts there will be more than bank failures this year than the 140 insolvent banks the FDIC closed last year.

At the end of the first quarter 2010, there were 775 banks on the FDIC’s list of “problem banks,” the highest number since 1992.

The trend in bank failures has increased dramatically since 2008, according to FDIC data.

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