The Federal Deposit Insurance Corporation has paid almost $9 billion to cover losses on loans and other assets at 165 failed institutions, The Wall Street Journal reports. The payments were made under loss-sharing agreements struck by regulator that protect buyers from most of the risk associated with loans inherited from failed banks.
Such deals are signed at 236 financial institutions, with the FDIC agreeing to assume most future losses on $160 billion of assets. The highest reimbursement of $1.21 billion has gone to BankUnited of Miami Lakes. FDIC officials estimate to make an additional $21.5 billion in payments from 2011 to 2014.
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