Sunday, March 29, 2009

fdic:federal deposit investment co.

The FDIC ( Federal Deposit Insurance Company) is an agency created by the government in 1933 for the purpose of insuring bank accounts and restoring faith in the banking system. Now, in the greatest flim -flammery in my experience the administration, without even a vote from congress, plans to use FDIC funds to insure private investment in "toxic bank assets". This will be done by insuring the purchasers of toxic assets from banks against loss. This is a perversion of the purpose of the agency, and probably not legal. Use of FDIC assets in this manner certainly does not restore faith in the banking system.


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