FDIC: estimate for cost of bank failures over $40B - KTTC Rochester, Austin, Mason City News, Weather and Sports

FDIC: estimate for cost of bank failures over $40B

WASHINGTON (AP) -- Federal regulators now believe U.S. bank failures will cost the deposit insurance fund more than $40 billion over the next four years as the economy weakens.

A Federal Deposit Insurance Corp. official says the agency's estimate last fall of $40 billion in losses through 2013 probably will be surpassed.

FDIC Chief Operating Officer John Bovenzi also says in testimony for a House hearing that Congress should more than triple the agency's line of credit with the Treasury Department to $100 billion from the current $30 billion.

Bovenzi says such an increase would ensure "that the public has no confusion or doubt about the government's commitment to insured depositors."

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