According to Chairman Sheila Bair it appears the Federal Deposit Insurance Corp (FDIC), you know the people who insure your bank account against the bank being stupid. They may be broke or worse by years end. The fund is currently at its lowest level in 25 years.
But given the accelerating bank failures that have been depleting the deposit insurance fund, she said, it “could become insolvent this year.”
“Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative,” Bair wrote in the letter dated Monday to the chief executives of the nation’s 8,305 federally insured banks and thrifts.
I suppose the recently approved 3.5 trillion dollar budget couldn’t spare a paltry hundred billion or so dollars to keep the FDIC solvent. Not this administration, no that money is better spent giving it away to people who made bad choices or didn’t work for it at all. While hard working Americans who didn’t purchase a house they could not afford or take out a second mortgage just to go on a vacation they could not afford could get the short end of this fiasco.
That is the glaring difference between a Democrat and a Republican. Democrats want to expand welfare while Republicans want to create real good paying jobs. Give a man a fish and you will feed him for one day, teach him how to fish and you will feed him for life.
“Some have suggested that we should turn to taxpayers for funding,” she said in her letter to the bank executives. “But banks — not taxpayers — are expected to fund the system, and I believe Congress would look skeptically on such a course of action.”
Of course spreading the wealth is somehow now OK and giving taxpayer money to piss poor banks is just fine, but saving a families bank account is considered wrong?
WTF is wrong with these people?
To me this current thinking is backassward, instead of throwing money at losing financial institutions that are hemorrhaging money left and right, save that money to protect the depositors.
Read the article here.
