Last week, the FDIC proposed raising fees on banks in order to build up its deposit insurance fund, which had just $19 billion at the end of 2008. That idea provoked protests from banks, which said such a burden would worsen their already shaken condition. The Dodd bill, if it becomes law, would represent an alternative source of funding.
Mr. Dodd's bill could also give the FDIC more firepower to help address "systemic risks" in the economy, potentially creating another source of bailout funds in addition to the $700 billion already appropriated by Congress.
The politicians are cooking the books again. Look closely for the hand is quicker than the eye. They're just taking money out of one empty federal pocket and shoveling it into another empty federal pocket and, instead of the banks paying for their insurance like you or me, taxpayers will pay for it.
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