Changes to FDIC Report

We're going to be late on publishing the latest FDIC Bank Failure Report, because we need to again retool our data. It seems that the FDIC has been getting bidding wars started over the deposits of some of the banks it closes, as demonstrated by premiums which acquiring banks are willing to pay to get the failed bank's deposits.

We presume that the FDIC counts that premium against the outlay from the DIF, thus reducing the apparent cost-to-DIF. It seems overall these premiums amount to a fairly large chunk of change. We will be adding those premiums back into the total cost-to-DIF in our analysis, which will likely result in a more accurate picture of total recoverable value of the U.S. banking system.