The man who couldn't say NO to a bad loan.
Posted on 03/05/2009 7:33:11 PM PST by bimboeruption
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.
Last week, the FDIC proposed raising fees on banks in order to build up its deposit insurance fund, which had just $19 billion at the end of 2008. That idea provoked protests from banks, which said such a burden would worsen their already shaken condition. The Dodd bill, if it becomes law, would represent an alternative source of funding.
Mr. Dodd's bill could also give the FDIC more firepower to help address "systemic risks" in the economy, potentially creating another source of bailout funds in addition to the $700 billion already appropriated by Congress.
Mr. Bernanke said in a Feb. 2 letter to Mr. Dodd that such a "mechanism would allow the FDIC to respond expeditiously to emergency situations that may involve substantial risk to the financial system."
The FDIC would be able to borrow as much as $500 billion until the end of 2010 if the FDIC, Fed, Treasury secretary and White House agree such money is warranted. The bill would allow it to borrow $100 billion absent that approval. Currently, its line of credit with the Treasury is $30 billion.
The FDIC's deposit-insurance fund has fallen precipitously with 25 bank failures in 2008 and 16 so far in 2009.
(Excerpt) Read more at online.wsj.com ...
hey, lets borrow money from Treasury that does not exist and throw it into that big black hole over there. One of these trillions we might actually fill it up!
/sarc
OK, so I should move my money to a safer bank?
THe downward spiral...
Soon, the safest bank around is going to be your mattress.
Why bother?
My deposits will be worth 10 cents on the dollar with the coming inflation.
It is to laugh.
Is Dodd getting another refi or something? Is that why they need the additional monies?
It would be easier for the gov’t to just declare that it will guarantee ALL deposits and be done with it. Doing so would at least prevent a panic.
I know this is hysterics but Im nervous. Im ready to move, where???? We, the common mind folks, need to go to a state (possibly annex) and change and/or forward the politics that will at least save us. Am I crazy???
China has no capital gains taxes and Estonia has a 13% flat income tax.
Both those countries have shortcomings, but they are a lot better in those regards than ours is.
It doesn’t help. I’m in a “safe” bank and they are forced by the FDIC to take over the assets of insolvent banks after the FDIC has paid the bad balance. Soon the assets left will default and start corrupting the “safe” bank.
If you're crazy...I'm crazy because I feel the same way.
A civil war looms.
Senator “I got a cheap loan” Dodd says the solution to the FDIC’s lousy management practices is to give them a 1700% increase in their line of credit?!
Why does this cretin keep getting re-elected? Who are the idiots who continue to return this moron to his self-assigned role of destroying our country’s financial system?
The man who couldn't say NO to a bad loan.
I think there is a real whisper revolution brewing...you can feel it. Many conversations, like the one you were having, are happening @ kitchen tables across America.
One has to ask why now and why so much? Why not just wait for the additional charges to supplement the current balance or do they know something we don't?
Here's something from Wikipedia that will make you throw up a little in your mouth:
"Currently Dodd is the longest-serving Senator in Connecticut's history, the 10th most senior of current Senators and one of three from the 1980 freshman class who are still serving (the others are Republicans Arlen Specter and Chuck Grassley)."
He and rino Arlen go waaaaaay back.
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