Isn’t FDIC back stopped by Us taxpayers? Doesn’t markets treat FDIC like the arm of the federal govt.? Doesn’t govt./congress appoint FDIC members?
Saying FDIC is separate from taxpayers is about as true as saying that Fannie and Freddie were separate from taxpayers![/quote]
Thats true but not the entire story.
The FDIC is also funded heavily by banks.
While the banks have been (occasionally) subsidized by the gov’t, they are not state properties.
Ergo, there is some taxpayer money there but its not the same as a taxpayer insurance fund.
