Markets Take Another Hit And Fed Chairman Says Insurance Fund Could Become Insolvent

US indexes across the board dropped 4% or more today. The Dow closed at 6,594.44 representing a loss of 281.40 points. The Nasdaq dropped 4%, and S&P 500 lost 4.25%.

Federal Deposit Insurance Corp. Chairman Sheila Bair announced that Insurance Fund could become insolvent this year. The Insurance Fund is what is used the Fed uses to pay the customers back for deposit losses in the event of a bank failure. To make matters worse, small bankers are outraged over the "emergency fee" and other increases which threaten to take 50% or in some cases 100% of the banks 2009 profits/earnings.

More at http://finance.yahoo.com/news/Stocks-tumble-as-investors-apf-14559588.html and http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=alsJZqIFuN3k.