Why FDIC's shrinking cushion Is bigger than it looks

Business Week:  The headlines look scary: The fund insuring U.S. bank deposits has shrunk to $10.4 billion from $17 billion in December and $52 billion in late 2007. The number of banks on the government’s problem list jumped to 416 from 305 last year. Forty-five banks have failed so far this year, more than in the last six years combined.

The banking industry is hurting, make no mistake. But before you stash your savings in your mattress, take a closer look at the numbers out today from the Federal Deposit Insurance Corp.  Read Article

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