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FDIC Prepares Consumers for Rough Road

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The head of the Federal Deposit Insurance Corporation is predicting more trouble for banks. But speaking in Chicago yesterday, Chairman Sheila Bair said consumers can rest easy. After the FDIC took over the failed Indymac Bank earlier this week, Bair says her office heard from a lot of nervous people.

BAIR: I understand yesterday we actually received 17,000 calls.

But Bair says most people are covered by FDIC insurance for $100,000 worth of deposits. And they have nothing to worry about.

BAIR: If you’re bank fails, and it’s extremely remote that your bank will fail, it will be business as usual. It will really be a non-event.

Bair may be trying to prepare consumers for a wave of bank failures. Currently the FDIC has a list of 90 institutions it says are at risk of failing.

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