Hey Bagholders! Gimme Another Half a Trillion for Banks!
Great summary at Calculated Risk.
WSJ story is here.
Here's the best part. The banks, which normally fund the FDIC, said they can't be bothered to pay higher fees to insure themselves against failures and runs on the bank.
Last week, the FDIC proposed raising fees on banks in order to build up its deposit insurance fund, which had just $19 billion at the end of 2008. That idea provoked protests from banks, which said such a burden would worsen their already shaken condition. The Dodd bill, if it becomes law, would represent an alternative source of funding.
So, gentle bagholder, you and I are potentially on the hook for another half a trillion. They took the risk. They carted money to their own bank accounts by the truckload. You and I get to cover their losses.
But don't be angry. It's for your own good. Oh, and don't start with that whole "punish the executives" thing. This is no time for your petty class warfare.
What do you call a busload of bank CEOs heading off a cliff?