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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Are we slowly learning the REAL reason the banks got bailed out?? (FDIC insolvency)?

Are we slowly learning the REAL reason the banks got bailed out?? (FDIC insolvency)?

FDIC is going to BORROW money in order to insure accounts. Well if the people that INSURE THE BANK ACCOUNTS don’t have any money, isn’t the whole system on the verge of collapse??

And in retrospect, isn’t the REAL reason the banks got bailed out because FDIC would have taken down the federal govt. with the TRILLIONS it is currently insuring?? (TRILLIONS it doesn’t have)

Too big to fail = if you fail, the govt.fails too

http://news.yahoo.com/s/ap/20090922/ap_on_bi_ge/us_banks_fdic_bailout

Regulators have approached big banks about borrowing billions to shore up the dwindling fund that insures regular deposit accounts.

The loans would go to the fund maintained by the Federal Deposit Insurance Corp. that insure depositors when banks fail, said two industry officials familiar with the conversations, who requested anonymity because the plans are still evolving.

Regulators also are considering levying a special emergency fee on all banks, charging regular fees early or tapping a $100 billion credit line with the U.S. Treasury, the officials said.

FDIC spokesman Andrew Gray said that while borrowing from the banks “is an option, it’s not being given serious consideration.” The board meeting where the plans will be discussed is scheduled for next week.

But a government official familiar with the FDIC board’s thinking said earlier Tuesday that the plan was being considered. He requested anonymity because he was not authorized to discuss the matter.

The fund, which insures deposit accounts up to $250,000, is at its lowest point since 1992, at the height of the savings-and-loan crisis. Ongoing losses on commercial real estate and other loans continue to cause multiple bank failures each week.

FDIC Chairman Sheila Bair wants to avoid tapping the Treasury credit line, and Treasury officials insist that the strongest big banks have enough extra capital to operate, the officials said. Comptroller of the Currency John Dugan, who is a voting member of the FDIC board, has said he doesn’t want to levy another fee on banks while the industry is still recovering.
brown………and?

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6 Responses to "Are we slowly learning the REAL reason the banks got bailed out?? (FDIC insolvency)?"

  1. Chief Chilemba Onyango says:
    Where my village idiot? Give village idiot back to me!!!!!!

    He my village idiot. The one with funny ears.

    GIVE VILLAGE IDIOT BACK!!!!

  2. brown9500.v10 says:
    Move to Altanta.

    There is a water rush going on.

  3. Zodiac Man says:
    It is called greed.
  4. ohbrother says:
    I posted a few answers last month that a House Bill was slipping under the radar that FDIC was going to have to borrow billions because it was broke. So they are borrowing money from a Government that doesn’t have any. The Government is buying back it’s own debt which they said they wouldn’t do. People better wake up.
  5. Train of Consequences (Matthewâ™ ) says:
    Yes. It’s funny I could of swore a month ago they said they didn’t think they would need to borrow money. I thought things were getting better. Now they are saying maybe we need the cash after all.

    Our country is being held hostage by bankers. I guess we should also thank the government for pressuring them to give everybody a house and some of the people that took the houses too.

  6. billie gram says:
    Do you think this system is like a ponzy(sp?) scheme?

    Where is the fund (FDIC) held?

    Is it in the Federal Reserve? (I really don’t know). Who will the FDIC borrow from?

    If so, then that HR 1207 bill that I was just hearing about on c-span, and there will be a hearing on on friday, MIGHT shed some light. It’s about auditing the federal reserve. From what they said, they got the stimulus money, but only have spent a fraction, so “Where is our money?” It NEEDS to pass.

    I won’t even pretend to understand all this…I’ll probably have to read your question a few more times and do some googling…but, yeah, something’s up.

    Any feedback will be read.

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