The irony is almost too much to take!

The Federal Deposit Insurance Corporation (FDIC), which protects bank depositors when banks go under, may need a loan...from the banks it protects!

The insurance fund, which the FDIC manages, has been severely drained this year due to increasing bank failures. The FDIC has seized 94 banks so far this year, and the fund is down to about $10 billion.

If that sounds like a lot of money, consider this: when IndyMac bank failed, it cost the FDIC $32 billion. You can see how the fund could easily be wiped out by one big bank failure at this point.

The FDIC has already imposed one special assessment on banks this year to increase its reserves. Now, rather than imposing another special assessment, a new option is on the table: have the nation's healthy banks lend the insurance fund money to cover sick banks.

Banks prefer this option of course...no new insurance fund payment and they get to collect interest from the government. If I wasn't laughing, I'd have to cry!

Please, head our warnings...there will be more bank failures ahead. Make sure you know the warning signs that your bank is in trouble. And make sure that you know what the FDIC covers-and just as importantly what the FDIC doesn't cover-so that every penny of your hard-earned money is protected if your bank does go under.

Read More In: Banking