Alex Bobrov
Market Leader reports that 6 more US banks was declared bankrupt by the US authorities. 3 of them are in Georgia, the other 3 in New Jersey, Ohio and Wisconsin. All in all there are 125 US banks that were declared bankrupt as they had failed to repay the loans. It was announced on the internet site of the Federal Deposit Insurance Corporation (FDIC) on September 17th.
The FDIC spent $347.6 million. The corporation insures the deposits of 7830 American banks with the total sum of $13.2 trillion. The growing number of bankrupt banks exhausted the US budget, having taken a couple of billions. The FDIC itself is currently in the so-called “red zone”. It is when the total sum of the payments to the bankrupt bank depositors exceeds the earnings from insuring the operating banks. On July 30th, 2010 the overall deficit of the FDIC reached $20.7 billion.
According to the forecast made by the FDIC, the series of bankruptcies will continue. The total sum for the period 2010-2014 may reach $60 billion.
Despite that the FDIC stays positive as:
• The amount of the US banks that became bankrupt considerably reduced in 2010 as compared with the previous year, when 140 North-American banks were declared bankrupt (vs. 125 banks this year).
• The US government and the BRIC still guarantee a100% repayment to all the depositors whose deposits do not exceed $250.000
What is the USD reaction to the continuing series of bankruptcies?
According to the analysts of , the bankruptcies certainly do not make investors more confident about the US banks.
On the opinion of the Department of DFWA of Masterforex-V Academy EURUSD is currently making a correctional movement in the mid-term range. There are no significant trend movements expected within a month, even though there is a chance of unpredictable sharp movements, both upwards and downwards. The currency pair is hampered by the resistance level at 1.3010. Correctional wave will show whether the price can reach the next level at 1.39.
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Alex Bobrov
