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WASHINGTON -- Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.
The Connecticut Democrat's effort -- which comes in response to urging from FDIC Chairman Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner -- would give the FDIC access to more money to rebuild its fund that insures consumers' deposits, which have been hard hit by a string of bank failures
FDIC warns US bank deposit insurance fund could tank (AFP)
A week ago the FDIC reported a sharp depletion of the deposit insurance fund in the fourth quarter due to actual and anticipated bank failures, to 19 billion dollars from 34.6 billion in the third quarter. The FDIC said it had set aside an additional 22 billion dollars for estimated losses on failures anticipated in 2009.
to temporarily borrow
Originally posted by phinubian
I truly believe in personal responsibility, but as time goes on it is incrementally revealed that the banks are the most irresponsible out of any party involved in this debacle and yes I am saying this also includes the dummies that took the loans that had some crazy reset schedule that started out at 4% then shot to 13% but looking at this now they are not the root cause, the rating agencies like Moodies and S&P are to blame also, they weighted and rated the crap contributing to bad securities or junk, the banks are supposed be able to manage risk, they are supposed to be able to not sell products that would fail, this problem is at the top all the way down to the foolish loan officers and underwriters that handed out free money, then thought they could create some great moneymaking security, truth of the matter, there were smart players that bankrolled off of that scheme, the ones in the know got their money early and got out, more people need to go to jail and more companies and banks put out of business.
[edit on 5-3-2009 by phinubian]