Posted on 09/22/2009 7:25:17 AM PDT by SeekAndFind
Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government.
Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.
The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune.
A hallmark of the financial crisis has been the decision by successive administrations over the last year to lend hundreds of billions of taxpayer dollars to large and small banks.
“It’s a nice irony,” said Karen Shaw Petrou, managing partner of Federal Financial Analytics, a consulting company. “Like so much of this crisis, this is an issue that involves the least worst options.”
Bankers and their lobbyists like the idea because it is more attractive than the alternatives: yet another across-the-board emergency assessment on them, or tapping an existing $100 billion credit line to the Treasury.
The Federal Deposit Insurance Corporation, which oversees the fund, is said to be reluctant to use its authority to borrow from the Treasury.
Under the law, the F.D.I.C. would not need permission from the Treasury to tap into a credit line of up to $100 billion. But such a step is said to be unpalatable to Sheila C. Bair, the agency chairwoman whose relations with the Treasury secretary, Timothy F. Geithner, have been strained.
“Sheila Bair would take bamboo shoots under her nails before going to Tim Geithner and the Treasury for help,” said Camden R. Fine, president of the Independent Community Bankers. “She’d do just about anything before going there.”
(Excerpt) Read more at nytimes.com ...
I hope nobody has money in the bank.
They have to cover all monies within the FDIC limit now even if they have to use monopoly money some more...
But then again...
The dollar has to crash for 0bama’s U.N. global currency NWO goals he is doing as I type this- to be met.
quote of the year.
(1)let a bank fail and borrow from other banks to cover the FDIC obligations
(2) have the failed bank merged into or taken over by a non-failed bank
(3) have the Treasury or Fed bail out the bank to keep it from failing ----
(1) is the best of the bad choices. That way the depositors are protected and the bank's bondholders and other creditors are not. That's as it should be, and incentivizes bank bondholders to be careful about what bonds they buy.
this from the folks who would not allow banks to opt out of TARP $$$, and then refused to let them pay it back....
laughable if it were not so evil...
Actually Karen, if you weren't a retard you'd realize it's a supreme demonstration of federal incompetence and inability to properly govern because of over-reach and stupidity.
| Yes, I have a badge and I like to use it. LOL
|
2 is already happening in the city I live in.
So this tells me that 3 not being able to happen is the bottom of the barrel of ideas. Crap has hit the fan times 7.
Peter cant borrow from Paul to pay John with monopoly money.
I guess it is time NOW to get our money out of the banks.
I thought about this....
It is worthless whether it is under the mattress or in the bank...
So we just have to wait for the false messiah and the U.N. to tell us when the Euro/0bama Money conversion kicks in.
Gold is the ticket to those that can afford it. But should we all convert all our money (poor or not) to gold; is the question.
So...should I cash out my savings and checking and start using the under-the-mattress method???
See post 34.
I think they want a run on banks to make NWO happen faster. As nuts as that sounds.
LOL!
Brother, can you spare a few Tril?
This is not good. Not good at all.
Dave Ramsey says gold is a waste of good money. He makes sense with his example of New Orleans after Katrina as a ‘failed economy’. No-one was running around with little bags of gold to buy things. They did however trade goods...like gasoline, water and for the looters..tennis shoes and Heiniken...lol. Bullets will be worth more than gold when it all hits the fan imho.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
Badges? You ain't got no badges. Nobody give you any steenking badges.