And then the music ended.
The bankers made their bonuses, had their parties, lived their lavish lifestyles. And the US taxpayer picked up the tab.
FDIC may borrow money from Treasury
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.
August 27, 2008
And then, right on schedule, the FDIC ran out of money and became insolvent (no matter how they try to spin it)
Posted by blogger at 8/27/2008