The FDIC is capitalized by the banking industry not the federal government. Banks are assessed a fee based on the condition of the bank. Poorly run banks pay more than well run banks. The fund must stay at 1.25% of the total deposits of all banks. The government stepped in on the FSLIC (Savings and Loans)and that cost the taxpayers some money but a good portion was also paid by the banks. Many of the S & L problems were caused by congressmen on both sides of the aisle, Cranston and McCain had a very costly association with Keating. The banks were mandated to pay the shortfall when the funds were merged. Stake, if you want to look at the next problem look at credit unions. They claim to be "non-profit" but yet in most cases their net worth increases each year enen. Their directors live the lifestyle of the rich and famous with training seminars on cruise ships in Australia or Europe in the fancy rooms at the top of the ship. Ususall they don't even pick up the seminar packet. All of this done without them paying one penny in taxes. They go to Washington DC and they even refuse to pay the local hotel taxes. Management that has been trained in car loans, home loans and consoldation loans is now entering corporate lending. It is a matter of time until the failures start and CUNA will be merged into the FDIC with the bankers once again having to pay for sins of a competitor. At least the Savings and loans paid taxes.