FDIC may borrow money from Treasury: report

[dkf]

(Reuters) - Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported.

The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said.

The borrowed money would be repaid once the assets of that failed bank are sold.

"I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses," Chairman Sheila Bair said in an interview with the paper.

Bair said such a scenario was unlikely in the "near term." With a rise in the number of troubled banks, the FDIC's Deposit Insurance Fund used to repay insured deposits at failed banks has been drained.

http://www.reuters.com/article/ousiv/idUSBNG28670420080827

[deacon]

1. A thing they should address at the convention. n/t

[grannie4peace]

2. dangerous business

[CoffeeCat]

3. How does one find out if their bank...

...is vulnerable?

Banks must disclose their investments, correct?

Is this just a matter of asking for a bank's prospectus and finding out
if they have a lot of investments in the housing/mortgage sectors?

[melm00se]

4. pull their annual report

and/or ask for their detailed financials (balance sheets/income statements etc) and review them closely.

[mykolas]

5. John & Cindy McCain Among 47000 Richest Americans, Says IRS

CONGRATULATIONS to John and Cindy McCain, who are among the 47,000 richest Americans worth $20 million or more, according to the IRS. Previously, the Wall Street Journal has reported their worth at more than $300 million. See today's IRS figure story at:

http://online.wsj.com/article/SB121979650939374865.html...

John, you can buy a lot more Ferragamo's with those bucks, and maybe even the White House!

[CoffeeCat]

7. Wow! And he only had 8 houses!

Within the social circles that he travels--8 houses is quite a disgrace!

That puts McCain in the top 0.00001566667 percent (47,0000 divided by 300,000,000)

Kinds puts things in perspective, doesn't it?

[angstlessk]

6. Nooooo...they are using taxpayer money to bail out the banks

the treasury only has taxpayer money, it does not have a job of its own that makes its own money! :grr: THIS SHOULD bring to the fore the S&L scandal, how much money it cost the taxpayer (have we finished paying THAT off yet?) and the involvement of mcsame! did I say :grr:?