More bad news: Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., said the fund it uses to protect customer deposits at banks could dry up amid a surge in bank failures, Bloomberg reports. Bair was responding to banking industry criticism about a new fees the FDIC approved. Without the new revenue, Bair warns the FDIC fund could become insolvent this year. The fund guarantees customer deposits of as much as $250,000 in cases of bank failure. Bair warns it may be stressed by the “large number” of bank failures that could occur through 2010 because of the “rapidly deteriorating economic conditions”, Bloomberg says. See the story here.
Capital adviser: Jim Richardson, an LSU economics professor and director of the school’s Public Administration Institute, has been appointed to Louisiana Coalition for Capital Board of Advisors. The board is made up of leaders who support economic development and job creation through long-term access to capital for Louisiana businesses. While Louisiana entrepreneurs have had some success in getting capital for energy-related projects, Richardson says the board wants to open financing up for other businesses and industries.