The FDIC needs a bailout

[marmar]

from the NY Times:



F.D.I.C. May Borrow Funds From Banks

By STEPHEN LABATON
Published: September 21, 2009


WASHINGTON — 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.” ................(more)

The complete piece is at: http://www.nytimes.com/2009/09/22/business/22bailout.html?_r=1

[Deja Q]

1. What goes around comes around, kinda like herpes...

Well, not literally and it's not the best figurative reference, either...

It keeps the money flowing, which is probably a good thing...

[Nikki Stone1]

2. We're financing our own indebtedness...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x374414

[Subdivisions]

3. Tic...tic...tic... n/t

[WillyT]

4. Check Out This List And You'll See What They're Talking About...

Link: http://www.fdic.gov/bank/individual/failed/banklist.html

:shrug:

[DemReadingDU]

13. nice toon, n/t

[wroberts189]

5. Quick ..edit subject for spelling... knr nt.

[marmar]

9. Ooops.....I could have sworn I typed that "d"

:)

[cascadiance]

6. Why build up another bubble? TAX the healthier banks and the well off...

And if you tax the well off individuals to help bail out the poor individuals, then there'd be less foreclosures, and less bad loans, and less problems of bank closures needing the FDIC! Attack the problem at the source!

REBUILD THE MIDDLE CLASS!

[LuvNewcastle]

7. Redistribute the wealth?

Socialistnazicommunist!:)

[cascadiance]

8. Call me what they want to call me if they will! It still is the right thing to do!

FDR knew it, and took off his gloves to do it. We need leadership to do the same now! :)

I would frame it as the need to "unredistribute the wealth, that has been redistributed to the top for too long now!"

[LuvNewcastle]

10. I just love it when I see a teabagger sign

saying, "Don't redistribute the wealth!" This country would be an impossible place to live without wealth redistribution.

[DCKit]

11. Since when does the FDIC rescue banks?

The article is either wrong, or the FDIC's duties have expanded beyond all recognition.

These banks need to fail, just rescue the depositors. Then jail the management.

[girl gone mad]

12. Yes, I'm sure the banks would never do anything like..

hike fees to cover the increase. They're above that. They'll cut bonuses and dividends to pay for this bailout. Right??