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<p>[QUOTE=&quot;Cloudsweeper99, post: 1081184, member: 3011&quot;]You are correct.&nbsp; All member banks pay annual dues to the FDIC as sort of an insurance premium.&nbsp; Those funds are used to cover failed banks.&nbsp; But keep in mind that when a bank fails, it doesn&#039;t mean that all of the assets are worthless, so the FDIC only has to make up the difference between what the bank owes depositors and the value of the assets.&nbsp; Banks are usually shut down before the losses become a significant percentage of total capital.&nbsp; Failed banks are normally acquired by larger banks after the shortfall is made up.&nbsp; I believe Congress can authorize additional funding for the FDIC in the event their reserves are not sufficient.[/QUOTE]</p><p><br /></p>

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