Tom Swirly

FDIC Insurance Fund - It Doesn't Actually Exist

"I mean seriously, did you think they "invested" it in something...stocks? mutual funds? mortgages? commercial loans?"

Perhaps you don't understand the idea of "insurance". There are tons of insurance companies all over the world, some with exposures significantly greater than the FDIC, and they find useful ways to park their money.

The whole idea of compartmentalizing is to reduce risk. The idea of a separate corporation for the FDIC is to keep the risk managed in one place, so (theoretically) managers at the FDIC should have pulled the fire alarm a couple of years ago, saying that their cost of risk was starting to exceed their capital.

When you're simply paying a tax and getting a direct siphon into the US Treasury, all the advantages of the "insurance" structure are gone.