The FDIC has repeatedly said that it does not want a government bailout because it is self-sufficient and funded by fees from the banks themselves. They have repeatedly said that Taxpayers should not be on the hook for bank failures. However, with 95 bank failures so far this year their fund is depleting much faster than anticipated. See Article. They need to raise $45 Billion, and have proposed that banks pre-pay their deposit insurance premiums for the next three years by the end of December. The FDIC suggests that most banks will be able to pay for it out of their reserves. Hey wait a second, the banks primarily put their “bailout” money in their reserves. In effect, the FDIC is pilfering the bailout money. So much for the taxpayer not being burdened with failing banks!
Tuesday, September 29, 2009
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From what I understand, almost all of the bailout money given to corporate banks has been repaid.
ReplyDeleteThe OTHER bailout recipients is a different matter... I think we can pretty much say goodbye to the money doled out to Fannie, Freddie, AIG, and GM.
No, not all has been repaid. The government has been especially picky about who it lets repay and when.
ReplyDeleteCompanies like Goldmann Sachs "repaid" from the the funds they received from AIG, who received unholy sums from the government. Essentially Goldman borrowed our tax dollars and repaid us with our own tax dollars... brilliant.
The government still has large ownership stakes in Bank of America and Citigroup.
ReplyDeletehttp://www.reuters.com/article/newsOne/idUSTRE5AC56V20091113