FDIC Needs a New Credit Card
by tdaxp ~ May 6th, 2009
Paul Geithner acolyte Sheila Bair has blown through the FDIC’s fortune in her quest to make sure politically powerful speculators don’t lose the money they bet before the financial crisis. Therefore, she had to go beg Congress for more money.
Predictably, Congress is giving it to her:
Besides raising the cap on FDIC borrowing, the bill gives the federal insurer a $500 billion credit limit that will sunset at the end of next year.
Part of this is for the PPIP, see: Sorkin’s ‘No-Risk’ Insurance at F.D.I.C.
[The F.D.I.C. is] going to be insuring 85 percent of the debt, provided by the Treasury, that private investors will use to subsidize their acquisitions of toxic assets. The program … is the equivalent of TARP 2.0. Only this time, Congress didn’t get a chance to vote.
Congress talks tough, but has little interest in opposing the speculators who pay for their reelection campaigns.
How long before the Oligarchs run out of governmental agencies to raid? (I don’t think it will get that far. Eventually, Geithner will be forced to resign.)
I think this is your...