Senate Moves to Give FDIC $500B Loan

Senate Moves to Give FDIC $500B Loan

online.wsj.com

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

(visit the link for the full news article)

Now we have come to bailing out the FDIC , as they are now becoming insolvent. The Federal Deposit Insurance Corp. is soon to be out of money. With the increasing number of banks that are failing , this is truly becoming a snowball effect. I fear that we are headed into something far worse than the 'Great Depression'.

online.wsj.com
(visit the link for the full news article)

Well, out of any of the bailouts, this one should have it. At least they are using it to protect American's money.

Does this mean Congress has to pass another stimulus for 500Billion for the treasury to resupply the money they are loaning to the FDIC?

It will never end. Give me give me give me.

and onward we march closer to a
collapse of our government and law and order. society in general.

eh...

What's another half a trillion bucks among friends?

I probably have that much on me.

"Temporarily borrow" a half trill.?.

This is very bad news. Is Citigroup too small to bail?

[edit on 5-3-2009 by JohnTheBaptist]

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]

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.

FDIC warns US bank deposit insurance fund could tank (AFP)
But Sen. Dodd said as much as $500 billion in temporary bailout. Sounds as if they are preparing to insure a total failure soon. I expect to see a wave of people heading to the bank to withdraw either before the FDIC becomes insolvent or before the total collapse of the banking system, just like the Great Depression. Odd how the FDIC was created to avoid this, instead they sent the first alert that you need to get your cash out now.

and the dominoes keep falling....

I know we are headed into something worse than a great depression. I feel it deep within. I trust that feeling over any "expert." I have a feeling all governments across the world will collapse, but this could be a great time. There is a growing sense of responsibility in everyone I encounter, a wisdom of sorts. Those that have awakened from the illusion know their time for action will be needed soon.

They will attempt to hold it together as best they can, but it will fail. I'm done with this monetary system anyway. It seems to favor rich, and favor aggressive wars which people profit from.

reply to post by jam321


NO Senator Dodd will attach it to a bill in the senate that will get sent to the house to get passed. watch and see I'm 99.999% sure this is how The FDIC will get bailed out. And it will be a bill passed with hardly any news coverage.

reply to post by L.HAMILTON
Morgan Stanley predicts things to get worse than the 'Great Depression' of the 1930's...........www.guardian.co.uk...

"The Emperor realized that the people were right but could not admit to that. He though it better to continue the procession under the illusion that anyone who couldn't see his clothes was either stupid or incompetent." Hans Christian Anderson

to temporarily borrow

That part is a total lie. Like the ``temporarily borrowing`` by Citigroup, AIG, BAC and many others of trillions? And GM/Ford?

Come on. Shut down the big banks, everyone who had a mortage with them have nothing to pay no more.

Keep the markets from having big banks. And make it illegal to have credit defaut swaps and no more ridiculous credit rating.

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]

Wow... I agree so very completely.

There has to be an incentive not to do stupid stuff with securities which are the fundamental aspect of our entire economy. I realize, in general our economy should be based on a more diverse set of fundamentals, however, when it's biggest fundamental is left to the market to decide if it is providing value or not, it appears that the market tends to make that decision in a very monstrous manner. But this is the Frankenstein those in favor of deregulation have created. And they are right, the market does judge value very critically, so critically it has the power to destroy the very fabric of our life. It's THAT important to our lives and it's also THAT important to regulate, at the very least, the foundation the entire thing is built upon.



The whole fiasco was nothing short of embezzlement.