The FDIC reported today that its Deposit Insurance Fund has a balance of -$8.2 billion.
The fund's value declined $18.6 billion during the third quarter, in part because of having to set aside $21.7 billion for loan loss failures. This is the first time the fund has dropped to a negative level since the third quarter of 1992, when the nation was just coming out of a recession.
In September, the agency predicted that the fund's value to drop below zero and has taken several steps to increase its holdings, including requiring banks to pay their premiums earlier than usual.
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