Reply #73: I'm going to catch hell for this because as a former banker I know what I suggest.

[Chan790]

What if FDIC simply responded "Fuck You" and refused to pay out on non-deposit funds such as these? It's not what FDIC is there for and it shouldn't be used this way. Even the Freeps would applaud that decision, it'd be like saying "Hell No!" to the mother of all TARPs. We all know how much they loved TARP.

Yes, it probably takes down FDIC entirely to do so. We'd just have to implement a new deposit-guarantor. With a decision as bipartsan as this, it wouldn't be hard to do so. There would be massive near-100% public support for it. The failbanks would fail, the stockholders get wiped, the anchor drops off the economy and away we go!