BANKING

Bank Insurance Fund Has Deficit of $7 Billion: The federal bank insurance fund had a deficit of $7 billion at the end of last year, reflecting money set aside to cover future bank failures, the Federal Deposit Insurance Corp. announced. Despite the deficit, accounts of up to $100,000 are protected because the agency has $30 billion in additional borrowing authority from the Treasury. The FDIC said it does not expect to use any of this money until later in the year. The insurance fund had a net loss of $11 billion last year after operating expenses and creation of a $15-billion reserve to cover expected losses when banks fail. The net loss of $11 billion wiped out the fund’s overall reserve and produced the unprecedented deficit of $7 billion.