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Reply #41: FSLIC couldn't either during the S&L deal [View All]

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DeschutesRiver Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Feb-20-09 12:27 PM
Response to Reply #35
41. FSLIC couldn't either during the S&L deal
Edited on Fri Feb-20-09 12:33 PM by DeschutesRiver
And the .gov got around that without resorting to nationalizaion. Nationalization isn't the only way to deal with an underfunded insurance program. It will be interesting to see what a "nationalized" bank is exactly; I don't think .gov has finalized the terms and conditions yet?

The FDIC claims to be backed by the full faith and credit of the U.S. Government, but I don't know what authority gives that status. Other than the obvious, ie without FFC in a situation that goes beyond FDIC resources, people will withdraw from the banking system and it will collapse into a smoking heap. And a certain percentage will never go back to it, a fact of which the .gov is quite aware and which is a pretty powerful incentive.

End of the day, regardless of whether .gov chooses to call its rescue a FFC backing of the FDIC insurance system, or a nationalization of every failed bank beyond FDIC ostensible limits, it is the same end result - taxpayer funded. And done in aid of making people continue to use and believe in the present banking system.

I don't think how a bank is deemed failed, ie whether taken over or sold or nationalized, will make a difference in analyzing the odds of a delay in access. Acknowledging the possibility of a delay in access is a reasonable assumption given what has gone on recently.

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  -interesting prediction....Citi bank and BOA are goin down within 60 days maybe lots sooner ORDagnabbit  Feb-20-09 12:01 AM   #0 
  - I wouldn't be the least bit surprised  alcibiades_mystery   Feb-20-09 12:03 AM   #1 
  - k&N  NMDemDist2   Feb-20-09 12:03 AM   #2 
  - We should start charging for NATIONALIZING capitalism . . .!!!!  defendandprotect   Feb-20-09 12:04 AM   #3 
  - That made me realize how happy it would make me to  truedelphi   Feb-20-09 02:31 AM   #19 
  - I have credit cards and a loan through BofA  rpannier   Feb-20-09 12:05 AM   #4 
  - I have a student loan through Citi.  murielm99   Feb-20-09 01:00 AM   #15 
  - Student loans are a definite credit problem for the nation . . .  defendandprotect   Feb-20-09 09:07 AM   #23 
  - My mortgage and credit cards  ellie   Feb-20-09 12:50 PM   #43 
  - IF either fails there will be a huge run on the others....  Blackhatjack   Feb-20-09 12:10 AM   #5 
  - This is a crock. It will not happen.  David Dunham   Feb-20-09 12:18 AM   #6 
  - Cut out the nonsense people! Bear Stearns is solid as a rock!  JackRiddler   Feb-20-09 01:05 AM   #17 
  - as the poster said.. .ruh roh  ORDagnabbit   Feb-20-09 02:04 AM   #18 
  - Bingo!  jtbrick   Feb-20-09 12:21 AM   #8 
  - The answer as to what has not been revealed is that the sinkhole  truedelphi   Feb-20-09 02:34 AM   #20 
     - Not to downplay the problem . . . but the problem is unregulated capitalism . . .!!!  defendandprotect   Feb-20-09 09:12 AM   #24 
        - Newsweek's headline this week is  truedelphi   Feb-20-09 01:34 PM   #46 
           - Interesting comments . . .  defendandprotect   Feb-20-09 04:12 PM   #52 
  - All the kings horses and all the kings men cant put humpty dumpty back together again.  seemslikeadream   Feb-20-09 12:19 AM   #7 
  - Why would we want to? Capitalism is over -- MoveOn to economic democracy . . .  defendandprotect   Feb-20-09 09:14 AM   #25 
     - I'm with ya.  readmoreoften   Feb-20-09 01:10 PM   #45 
  - K&R  MilesColtrane   Feb-20-09 12:33 AM   #9 
  - What about ChaMu?  ananda   Feb-20-09 12:36 AM   #10 
  - Or Citiwide of America Lynch (aka C.O.A.L.! -are they "Clean"?)  cascadiance   Feb-20-09 12:58 AM   #14 
  - It's now gotten to the point where all sorts of bullshit fake stuff  The_Casual_Observer   Feb-20-09 12:43 AM   #11 
  - It does not seem to be CitiBank's week  seemslikeadream   Feb-20-09 12:51 AM   #12 
  - My sister works at BofA... Hoping she survives this if true...  cascadiance   Feb-20-09 12:53 AM   #13 
  - Citi Execs Takes Care Of Their Own  seemslikeadream   Feb-20-09 01:05 AM   #16 
  - So, which banks are solid-er, and FDIC insured?  snot   Feb-20-09 02:43 AM   #21 
  - Friend of mine works at a large bank in NY.  lurky   Feb-20-09 07:43 AM   #22 
  - "Officially Insolvent" is the key there. nt  ipfilter   Feb-20-09 09:16 AM   #26 
  - Which is why these banks have to be declared insolvent -- and nationalized . . .  defendandprotect   Feb-20-09 09:17 AM   #27 
  - These big banks need to be broken up and strict regulation imposed.  Liberal In Texas   Feb-20-09 09:19 AM   #28 
  - I've got all my money in BOFA, and I'm not about to dump it because someone on the internet told me  no limit   Feb-20-09 10:45 AM   #29 
  - that's who i bank with, i'm not worried, i don't love BOFA but so far i've had no problems  AlCzervik   Feb-20-09 10:47 AM   #30 
     - If you are under the FDIC insurance limits, then there shouldn't be any problem sticking with BOA  DeschutesRiver   Feb-20-09 11:07 AM   #31 
        - But lets assume BofA fails, Would I still have instant access to my money or would there be a delay?  no limit   Feb-20-09 11:31 AM   #33 
           - I honestly have no idea anymore  DeschutesRiver   Feb-20-09 11:44 AM   #34 
           - According to the last financial report available for the FDIC...  MilesColtrane   Feb-20-09 12:03 PM   #35 
              - FSLIC couldn't either during the S&L deal  DeschutesRiver   Feb-20-09 12:27 PM   #41 
              - I believe that insuring S&L deposits was eventually turned over to the FDIC.  MilesColtrane   Feb-20-09 12:42 PM   #42 
                 - That is what I recall re fslic/fdic  DeschutesRiver   Feb-20-09 03:03 PM   #50 
              - Ding, ding, ding. Why isn't this a major story?  joeunderdog   Feb-20-09 03:10 PM   #51 
  - Citigroup stock down 21.5% so far today. Trading at $1.97 a share.  MilesColtrane   Feb-20-09 11:09 AM   #32 
  - There was just a caller into Thom Hartmann who said his Citibank  Cleita   Feb-20-09 12:07 PM   #36 
  - Citibank now at $1.85...-26.29% for the day.  MilesColtrane   Feb-20-09 12:09 PM   #37 
  - Dodd Says Short-Term Bank Nationalization Might Be Needed as Shares Plunge  seemslikeadream   Feb-20-09 12:09 PM   #38 
  - I am trying to get a mortgage finalized with Countrywide right now...  LeftHander   Feb-20-09 12:14 PM   #39 
  - Dropping like anvils.  MilesColtrane   Feb-20-09 12:22 PM   #40 
  - Someone's sprinkling magic fairy dust.  MilesColtrane   Feb-20-09 01:01 PM   #44 
  - "Nevermind"  MilesColtrane   Feb-20-09 01:37 PM   #47 
  - Looks like the stocks bounced back up to yesterday levels (almost)  no limit   Feb-20-09 02:47 PM   #49 
  - I guess Arab and taxpayers' money could keep Citi afloat  Sultana   Feb-20-09 01:38 PM   #48 
 

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