Latest FDIC “we aren’t broke” scheme

[davelj]

[quote=4plexowner]
FDIC is going to do anything possible to pretend that they aren’t broke[/quote]

The FDIC knows it’s broke. The FDIC knows that everyone else knows it’s broke as well. This is not a secret. The issue is one of recapitalization and cash flow; that is, where do we best get the cash we need? I think having the banks prepay their insurance premiums is a good idea, so long as the FDIC doesn’t think that this gets them completely out of the woods – it’s just a stop gap measure. And the banks would capitalize the one-time prepayment over three years so that it wouldn’t represent and undue hit to capital all at once. Doesn’t it make sense that the banks should have to recapitalize the FDIC insurance fund with their own money, as opposed to going begging to the Treasury (that is, We the People)? This makes all kinds of sense to me. The only people who aren’t going to like this plan are the banks that are on the ropes, who deserve little sympathy.

[4plexowner]

“the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?

[4plexowner]

“the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?

[4plexowner]

“the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?

[4plexowner]

“the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?

[4plexowner]

“the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?

[davelj]

[quote=4plexowner]”the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?[/quote]

To some extent and in some cases, yes. Money’s fungible, after all. All the more reason to have the banks use “their” capital to shore up the insurance fund. Do you want to double down as a taxpayer by having the FDIC borrow from the Treasury? That’s a rhetorical question.

[davelj]

[quote=4plexowner]”the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?[/quote]

To some extent and in some cases, yes. Money’s fungible, after all. All the more reason to have the banks use “their” capital to shore up the insurance fund. Do you want to double down as a taxpayer by having the FDIC borrow from the Treasury? That’s a rhetorical question.

[davelj]

[quote=4plexowner]”the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?[/quote]

To some extent and in some cases, yes. Money’s fungible, after all. All the more reason to have the banks use “their” capital to shore up the insurance fund. Do you want to double down as a taxpayer by having the FDIC borrow from the Treasury? That’s a rhetorical question.

[davelj]

[quote=4plexowner]”the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?[/quote]

To some extent and in some cases, yes. Money’s fungible, after all. All the more reason to have the banks use “their” capital to shore up the insurance fund. Do you want to double down as a taxpayer by having the FDIC borrow from the Treasury? That’s a rhetorical question.

[davelj]

[quote=4plexowner]”the banks should have to recapitalize the FDIC insurance fund with their own money”

you mean the taxpayer’s money that the banks were bailed out with?[/quote]

To some extent and in some cases, yes. Money’s fungible, after all. All the more reason to have the banks use “their” capital to shore up the insurance fund. Do you want to double down as a taxpayer by having the FDIC borrow from the Treasury? That’s a rhetorical question.

[4plexowner]

FDIC Discloses Deposit Insurance Fund Is Now Negative
http://www.zerohedge.com/article/fdic-discloses-deposit-insurance-fund-now-negative

“Pursuant to these requirements, staff estimates that both the Fund balance and the reserve ratio as of September 30, 2009, will be negative”

[4plexowner]

FDIC Discloses Deposit Insurance Fund Is Now Negative
http://www.zerohedge.com/article/fdic-discloses-deposit-insurance-fund-now-negative

“Pursuant to these requirements, staff estimates that both the Fund balance and the reserve ratio as of September 30, 2009, will be negative”

[4plexowner]

FDIC Discloses Deposit Insurance Fund Is Now Negative
http://www.zerohedge.com/article/fdic-discloses-deposit-insurance-fund-now-negative

“Pursuant to these requirements, staff estimates that both the Fund balance and the reserve ratio as of September 30, 2009, will be negative”

[4plexowner]

FDIC Discloses Deposit Insurance Fund Is Now Negative
http://www.zerohedge.com/article/fdic-discloses-deposit-insurance-fund-now-negative

“Pursuant to these requirements, staff estimates that both the Fund balance and the reserve ratio as of September 30, 2009, will be negative”

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