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Senate Moves to Loan FDIC $500 Billion

hypocritexposer

Well-known member
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.

http://www.foxnews.com/politics/2009/03/05/senate-moves-loan-fdic-billion/
 

Faster horses

Well-known member
We have a good friend that owns his own bank and he told me today that the FDIC charged him $75,000 without warning. He was not very happy about this, of course and said that will finish some of the smaller banks, because they just don't have that kind of money.

He also said that he cancelled all advertsing; raised interest rates by .25% on new loans and asked his employees to take a 20% cut
in pay.

Ya, Obama is for the working man...
 

Sandhusker

Well-known member
And what really chaps my arse is that the man who's fingerprints are all over this collapse that is causing this meltdown, Chris "friend of Angelo" Dodd, is still on his perch!
 
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