The US government agency that guarantees US bank deposits resolved to nearly double its 2009 budget during a board meeting Tuesday as the US continues to battle a financial crisis and economic recession.
The Federal Deposit Insurance Corporation (FDIC) said its 2.24- billion-dollar operating budget would help it negate the risks of more bank collapses in the future, dpa reported.
Financial institutions exposed to a downturn in the US housing market suffered massive losses over the course of 2008.
A total of 25 banks declared bankruptcy over the course of the year, compared to just 3 in 2007, according to the FDIC, which earlier this year raised the amount of savings it guarantees to 250,000 dollars until the end of next year.
"It is a prudent and measured response given the current banking environment," FDIC head Sheila Bair said of the budget increase. "The American people rely on the FDIC to maintain the stability (of) the banking system and to protect their deposits."