The FDIC was warned of $800 million in losses.

Continental Illinois Holding Corp. said in a filing with the SEC that the Federal Deposit Insurance Corp. may lose about $800 million on the $3 billion in problem loans that it assumed from Continental Illinois National Bank. The FDIC assumed the loans and acquired 80% control of Continental Illinois when it rescued the troubled bank last summer. If losses exceed $800 million, the FDIC has the option of taking one share per $20 of loss, in effect making shares in the company worthless.