Talk about being the last kid to finish the race. The Wall Street Journal is writing opinion articles where it discusses that the FDIC will need a bailout soon! The mainstream media is finally picking up on the fact that Sheila Bair's numbers do not make any sense and the FDIC will soon be asking for its bailout from the government.
I still want to know why Remixx World's calculations on August 21, 2009 show that the FDIC insurance fund was overdrawn by $5.55 billion, and when the FDIC briefed the public, it said that it had to raise $5.6 billion by charging emergency fees. Coincidence?
Now all of sudden, the FDIC suddenly has money, but yet it has not tapped any credit lines.
Source: The Wall Street Journal
Rather than further soak capital from already weak banks, the FDIC ought to draw down at least $25 billion from its Treasury line of credit. Ms. Bair is going to have to ask for the cash sooner or latter, and she might as well do it before the fund hits zero and we get another round of even mild depositor anxiety. We suppose Congress could raise a faux fuss, but these are the same folks who ordered the FDIC to broaden the insurance limit. They need to face the political consequences of their promises.
I still want to know why Remixx World's calculations on August 21, 2009 show that the FDIC insurance fund was overdrawn by $5.55 billion, and when the FDIC briefed the public, it said that it had to raise $5.6 billion by charging emergency fees. Coincidence?
Now all of sudden, the FDIC suddenly has money, but yet it has not tapped any credit lines.
Source: The Wall Street Journal
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