"The FDIC says this bailout will cost $2.5 billion. I'm willing to bet that they are hiding losses just as they've been avoiding taking over banks until it's far too late. The combination is that they've built up a reservoir of big losses that they in no way can handle. The whole organization has been mismanaged from top to bottom since the beginning, when Paulson was telling Sheila Bair what to do. She was supposed to be running the tight ship of an insurance company, and she became part of the government scam.
Furthermore, the FDIC has guaranteed debts of over $300 billion by the big banks, lowering their interest rate on that debt so that the profits accrue more rapidly on the investments. The FDIC has no business doing such operations. Perhaps the worst line in Sheila Bair's interview here is her saying that the public has absolutely no reason to be scared that their deposits would not be covered. Her glib talking over interviewers very fast and acting confident reminds me of Geithner. They are driving all of us over the cliff."
WAKE UP PEOPLE!
Geez, I thought the fund balance was/is/will remain NEGATIVE so what was this?
"So I was watching The Office on Hulu tonight and the episode was sposored by...
Yup. Ads and everything. They were telling me to trust the banking system and reassuring me that me that my money is safe.
Seriously though, why are they dropping advertising money on Hulu of all places? Usually I just get video game ads there."
By the way, there it went: yet another bucket of FDIC money down the drain (though somewhat of a noble cause but with what reserve fund):
"Did you know the FDIC recently rolled out a Small-Dollar Loan Pilot Program? They’re currently in the middle of a two-year run where they’re studying how traditional banks can offer payday loans at a profit... Yes, because FDIC and associated banks are such benevolent organizations. Their hearts bleed for consumers, so much so that they use their tax dollars to loan to others without the goal of profitability! According to the Payday Loan Industry Blog, the FDIC Small-Dollar Loan Pilot Program is designed to foster long-term relationships in the communities in which its affiliate banks operate. All because they want to get good marks from those in charge of the Community Reinvestment Act."