fdic

Hoenig for FDIC

On July 8th, Sheila Bair will step down as Chair of the Federal Deposit Insurance Corporation (FDIC).  While I believe she’s gotten a lot wrong (such as not preparing the fund for the coming crisis), she has been about the only voice among senior bank regulators for actually ending too-big-to-fail.  With her departure, we might lose that one voice.  Later this year, Kansas City Fed President Tom Hoenig is also scheduled to

Tuesday Links

  • Twenty inaccurate claims in Obama’s speech to Congress on health care. “If [members of Congress] yelled out every time President Obama said something untrue about health care, they would quickly find themselves growing hoarse.”
  • Political tensions decreasing between Taiwan and China.

    FDIC Plan to Borrow from Banks Just Back-door Way of Putting the Taxpayer on the Hook

    With the declining balance of the Federal Deposit Insurance Fund, and more bank failures likely in the days ahead, the FDIC is looking for novel ways to avoid borrowing from Treasury to cover its expected shortfalls.  One proposal being floated is to have the FDIC borrow from healthy banks to cover the costs of bank failures.  Without borrowing from either the Treasury or the banks, FDIC would likely have to raise insurance premiums on all insured banks.

    Subscribe to RSS - fdic