Les Jones

FDIC may borrow money from banks to rescue banks

Wednesday, September 23rd, 2009 | Economics |

Who will bailout the bailer-outers?

New York Times - F.D.I.C. May Borrow Funds From Banks:

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.

Tags: banks, fdic

3 Comments to FDIC may borrow money from banks to rescue banks

Placebo
September 23, 2009

I’ve noticed you’ve posted quite a bit on banks failing. So where are you parking your money in light of this widespread problem? I know gold is one place …
Thanks!

Les Jones
September 24, 2009

Good question, (long) answer here.

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