FDIC May Borrow Money from Treasury: Report

I almost got sick after reading this because it is so terrible in so many different ways.

Source: cnbc.com
FDIC May Borrow Money from Treasury: Report

By Reuters | 27 Aug 2008 | 05:45 AM ET Font size: Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported. FIND CRAMER'S BANKS TO AVOID The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said.

The borrowed money would be repaid once the assets of that failed bank are sold. "I would not rule out the possibility that at some point we may need to tap into [short-term] lines of credit with the Treasury for working capital, not to cover our losses," Chairman Sheila Bair said in an interview with the paper. Bair said such a scenario was unlikely in the "near term."

With a rise in the number of troubled banks, the FDIC's Deposit Insurance Fund used to repay insured deposits at failed banks has been drained.

This is such a horrible idea on so many different levels. The Fed is broke to begin with and is only having more money printed to solve the problem.

So the solution is to raise the FDIC premiums pn already failing banks??!!! GENIUS!!

You should of put this in breaking news. No one will see this here and this is an important story. The fact is its another way the tax payers will have to cover the debt of big business. This is disgusting to no end and I hope the mods move this to a better location. The FED should be eliminated and the government printing its own damn currency.

[edit on 27-8-2008 by mybigunit]

reply to post by mybigunit



Ahem! This is another topic that needs to be watched. Breaking news comes and goes, this is a new development that needs to be watched over time. This thread is in the proper forum.

People have to get this forum on their radar now. I'll bump this if I have to for the word to get out. Just like I'm doing now.

Wow - I don't think people get the Title or it's repercussions.

This is HUGE! Where is everyone?