FDIC Bailout May Include Borrowing from Banks
Submitted by Big Bear on September 22, 2009 – 5:47 amNo Comment
The FDIC is seriously considering borrowing from banks to help top-up its deposit guarantee fund. From the NYT…
Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors, The New York Times’s Stephen Labaton reports. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune.
A hallmark of the financial crisis has been the decision by successive administrations over the last year to lend hundreds of billions of taxpayer dollars to large and small banks.
