Factual Inquiry: Does the plan say how FDIC losses would be funded?

[Kurt_and_Hunter]

In the Geithner plan the FDIC, not Treasury, puts up the great majority of money-at-risk. (More than 80%)

The FDIC is normally funded by mandated contributions from banks.

But sometimes, in emergencies, the FDIC is funded from general revenues. (Taxpayers)

So is it explicit anywhere how FDIC asset-plan losses (if there are losses) would be funded under the plan?

(I am guessing taxpayers because if the plan was bank-funded that would be a selling point we would have heard about, but I don't know that to be true.)

[indepat]

1. The FDIC will likely be having to access its borrowing authority with the US Treasury:

to wit, we taxpayers will likely be bailing out the banks from which the toxic assets reposed. On the bright side, lots of money will be freed up to eventually reward executives with pent up, much deserved, meaningful (humongous) stock and cash bonuses. :P

[Raineyb]

2. Look in the mirror

I suspect the tax payers will be footing the bill yet again. There's a story out that FDIC is underfunded because someone *cough* wasn't paying their premiums and no one forced them to.

:shrug:

I guess only the little people have to pay for their mistakes.

Regards

[Skwmom]

3. Do you really think there is any chance the banks are going to fund the FDIC losses?

Unless of course our govt borrows trillions and then gives it to the banks who in turn give it to the FDIC to "pay" for the losses. What a phony PR stunt that would be. Wait a minute. At this point, nothing would surprise me so maybe the banks will "cover" the FDIC losses.