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A bill before Congress would allow the Federal Deposit Insurance Corp. to borrow up to $500 billion from the US Treasury.
The measure, supported by Democratic Senator Christopher Dodd, of Connecticut, and chairman of the Senate Banking Committee, would help the FDIC rebuild the fund that insures individual bank deposits.
The bill would permit the FDIC to borrow as much as $500 billion until the end of 2010 if the FDIC, Federal Reserve, Treasury secretary and President Barack Obama agree the money is needed. The bill would permit the FDIC to borrow as much as $100 billion without such approval.
The effort by Dodd, D-Conn., comes in response to pressure from FDIC Chairman Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner, the Journal reported. The move 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, the paper said.
Q On the Dodd bill that would allow the FDIC to borrow $500 billion from the Treasury, that would require White House support. Would you support that if it passed?
MR. GIBBS: I would have to -- to be honest with you, I have not looked at that. Let me get a little bit more information; I'll have somebody pull that for the ride back. I don't -- I'm not as familiar with that one, so let me --