Is the Chair of the FDIC really that stupid? Or does she think that we are?
In an interview on CNBC this morning, FDIC Chair Sheila Bair said two things that just really ticked me off…..
- She said that hopefully taxpayers won’t have to foot the bill for bank failures. What? Does she think that all of the “assessments” that the banks pay to the FDIC just voluntarily come out of the bank’s pocket? Uh, news flash folks, that’s a cost of doing business and that cost gets passed on to their customers.
- She said that “we can continue to rely on the industry to fund the FDIC.” In reality, I think what she’s saying is, “I really hope we don’t have to go to the Treasury and ask for a direct bailout that would take taxpayer money. Let’s hope we can just keep raising fees on the banks and let them pass it on to their customers.
I don’t know about you, but it really irritates me when we get government officials, people who we are supposed to be trusting who are engaging in double speak and are attempting to make something sound good when it really isn’t.
Here’s the truth as I see it about the FDIC:
- Based on actual losses and projected losses on banks that they currently have control of, are essentially broke.
- They have asked the banks to pay for the next three years worth of assessments now. What are they going to do next year?
- They will most likely need additional Treasury (you and me) assistance as we aren’t close to being done with the bank failures yet.
It ain’t nearly as pretty as Ms. Bair makes it sound.
Tom Vanderwell
Bank failures are going to continue at a fairly strong rate but taxpayers hopefully won’t be asked to foot the bill, FDIC Chair Sheila Bair told CNBC.“I never say never. But at this point based on our current projections I think we can continue to rely on the industry to fund the FDIC.”
Technorati Tags: Bank Failures
“we can continue to rely on the industry to fund the FDIC.”
And the industry is on life support by???? the taxpayers!
The looting of America continues.