The FDIC is now looking for $500 billion to help bail out banks. This is the administration's back door approach to get more money into the banking system, in a round about way, without stoking the public's ire.
What else would you expect? Sheila Bair, Gentle Ben, and Timmy G. are the architects behind it.
The bill was championed by FDIC Chairman Sheila Bair, Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner. In a Feb. 2 letter to Mr. Dodd, Mr. Geithner said he supported a move as it would allow the government to respond to "exigent circumstances." Mr. Bernanke sent Mr. Dodd a similar letter the same day, suggesting a coordinated effort was at work.
"Clearly, it is a backdoor way to avoid the restrictions that could potentially come by means of TARP," said Rep. Scott Garrett, a New Jersey Republican who sits on the House Financial Services Committee.
In plain English, the FDIC fund, which insures $4.5 trillion of deposits is broke.
The next step is for you, the taxpayer to now bail out the banks with this new scheme. The FDIC fund supposedly was paid for by fees assessed to the banks.
Now instead, the banks will asses you the taxpayer, with new and greater fees on your banking, and then, you'll have to finance the new FDIC bailout!
And then, if you give these blessed bankers the $500 billion, they will now possibly allow you to have a mortgage cramdown, only if you go into bankruptcy!
And the bankers that looted your savings, and drove these stocks into the grounds will get their fat pensions and millions more of your money.
While you sweat yours!