Tuesday, September 22, 2009

FDIC bailing out banks--er, or the other way around

In an interesting yet practical twist of fate, healthy banks may provide funding for the FDIC, whose charter is to insure bank deposits when insolvent banks go into receivorship.

http://www.nytimes.com/2009/09/22/business/22bailout.html?_r=2

See my recent blog on funding concerns regarding the FDIC:

http://gregnguyen.blogspot.com/2009/09/fdic-insolvency.html

I guess that's what happens when the back stop needs a back stop.

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