Eegore
Serious Thumper
   
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SuzukiSavage.com Rocks!
Posts: 8893
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"If they need bailed out by the ESF/Treasury they are unable to fulfill their obligations."
The FDIC is not being bailed out. It is paying out the insurance amounts that it covers, not amounts it does not cover - you know, like literally all other insurance. Unless you know of an insurance that pays more than it says it will. I don't.
The FDIC is not a market protection, it will never prevent bank runs, it will only provide insurance to consumers - at the rate it says and not more, just the rate that is insured. This is exactly what it is doing, and it is not being "bailed out" by any other agency or the taxpayer. The customers account amounts - that were never covered in any way by the FDIC - are being funded by other banks, fees and adjustments.
It's similar to having additional insurance like AFLAC. You get covered a certain amount by your primary insurance - say up to $250k, and also you get supplemental additional payments from AFLAC. This doesn't mean your primary insurance "isn't fulfilling it's obligations", it means your expenses exceeded the amount you insured yourself for. Would AFLAC be "bailing out" your insurance if they paid over the amount your insurance ever said it would cover?
"A carnival shell game doesn't inspire confidence..............."
That's too bad. Maybe start to gain legislative leverage on increasing the FDIC amount, lobby for some change. I for one could care less since I am not going to keep hundreds of thousands of dollars in a savings account making almost no returns on it.
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