"Bank failures cost FDIC, not taxpayers" by Dave Carpenter, Associated Press | October 27, 2009
It ALWAYS comes back to the CONSUMER or TAXPAYERS!!!
Either YOU PAY UP FRONT as a "consumer," or you BAIL 'EM OUT in the end (which is where you get it, taxpayers).
CHICAGO - With the number of bank closings above 100 this year for the first time since 1992, the head of the Federal Deposit Insurance Corp. says she’s frustrated at perceptions that US taxpayers are on the hook for the costs of those failures.
“We have not borrowed a penny from Treasury,’’ FDIC chairwoman Sheila Bair reiterated yesterday. “I hope we don’t have to. If we do, we’ll pay it back promptly.’’
Well, IF GOVERNMENT WASN'T LYING ALL OVER the PLACE, lady.... !!!
In remarks to the American Bankers Association, Bair sought to dispel any false impression that the government is paying for the 106 banks that have been shut down so far this year.
Taxpayers are not liable for the roughly $25 billion that this year’s bank failures have cost the FDIC’s federal deposit insurance fund.
No, BANKS PAY a FEE and THEN PASS it on to "consumers/customers" in the form of lower interest or higher fees!
Bank failures are expected to cost the fund $100 billion through 2013. The FDIC has asked banks to pay in advance $45 billion in regular premiums that would have been due over the next three years, hoping to avoid or at least delay having to ask the Treasury Department to help replenish the fund. As the recent spate of bank failures drained the fund, the FDIC also imposed a special one-time fee on the banks earlier this year.
The FDIC can borrow to up to $500 billion from the Treasury - or $100 billion without seeking approval from the Treasury and Federal Reserve. But the FDIC has sought to avoid that partly because of fears it will appear to be another taxpayer bailout.
Which is EXACTLY WHAT IT WOULD BE!!!
BORROWING MORE from those FED CROOKS and their GOVERNMENT AGENDA and CURRENCY DISPENSER!
No matter how the fund is shored up, banks eventually will have to pay higher premiums to cover the costs of the failures. The FDIC insures deposits at more than 8,000 institutions. The independent agency is backed by the government, and deposits are guaranteed up to $250,000 per account.
Insured by a bankrupt insurance fund, but hey, who's paying attention?
Besides, I have nowhere near that amount of cash in the community bank.
The FDIC also still has tens of billions in loss reserves apart from the insurance fund.
Then WTF?!!!! Why the sky-falling fees needed?
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Also see: FDIC No Help For Homeowners
