Seems like people would be extremely concerned about a bankrupt govt. who can’t cover money they’ve already insured spending trillions more.
I understand FDIC could borrow money to cover any shorfalls (like the post office and a number of other debt creating federal agencies) but how long can this possibly last??
http://news.yahoo.com/s/ap/20090922/ap_on_bi_ge/us_banks_fdic_bailout
Regulators have approached big banks about borrowing billions to shore up the dwindling fund that insures regular deposit accounts.
The loans would go to the fund maintained by the Federal Deposit Insurance Corp. that insure depositors when banks fail, said two industry officials familiar with the conversations, who requested anonymity because the plans are still evolving.
Regulators also are considering levying a special emergency fee on all banks, charging regular fees early or tapping a 0 billion credit line with the U.S. Treasury, the officials said.
FDIC spokesman Andrew Gray said that while borrowing from the banks "is an option, it’s not being given serious consideration." The board meeting where the plans will be discussed is scheduled for next week.
But a government official familiar with the FDIC board’s thinking said earlier Tuesday that the plan was being considered. He requested anonymity because he was not authorized to discuss the matter.
The fund, which insures deposit accounts up to 0,000, is at its lowest point since 1992, at the height of the savings-and-loan crisis. Ongoing losses on commercial real estate and other loans continue to cause multiple bank failures each week.
FDIC Chairman Sheila Bair wants to avoid tapping the Treasury credit line, and Treasury officials insist that the strongest big banks have enough extra capital to operate, the officials said. Comptroller of the Currency John Dugan, who is a voting member of the FDIC board, has said he doesn’t want to levy another fee on banks while the industry is still recovering.
Shh….keep it down. The rest of us are trying to sleep. Go to sleep too.
It’s Obama. You really think he has a clue about fiscal responsibility? C’mon…
when you don,t have to earn the money, you don,t fuss about spending it. just print more. ask any 12 year old who wants $300.00 skinny jeans.
That would be logical, something our politicians are not.
Yes. Let’s cancel the marriage and offspring subsidies now to pay down the debt and reduce the projected deficits.
Live within your means.
Yes we should but since when does the US government do that?
Since Reagan took office and his famous you gotta go into debt before you can make money speech – every congress and president after went on spending sprees.
These aren’t Obama’s fault – he "inherited" them, remember? Therefore, he’s putting it off until after he finishes his own agenda.
Absolutely, whether it is him or the next person. Lets work on making the programs we have in place stop the corruption and make them work the way they should.
Yes, there is only so much water to go around. As water gets more scarce Gold goes up. Sky rocket in sight!
yes but most of the U.S government is made up of morons try asking this question to them.