Senate Banking Committee Chairman Christopher Dodd has moved to allow the Federal Deposit Insurance Corp. to temporarily borrow up to $500 billion from the Treasury Department, The Wall Street Journal reported Friday. The effort by Dodd, D-Conn., comes in response to pressure from FDIC Chairman Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner, the Journal reported. The move would give the FDIC access to more money to rebuild its fund that insures consumers’ deposits, which have been hard hit by a string of bank failures, the paper said. (MSNBC, Friday)
Bleeding becomes hemorrhaging.
FEE Timely Classic:
“Private Deposit Insurance,” by Jeffrey Rogers Hummel