Kathianne
03-06-2009, 04:45 AM
Crap. I was just saying this to a friend yesterday. I heard that Chase may be downgraded, it was the only 'healthy' big bank.
http://dailypundit.com/?p=34061
Bill Seeks $500 Billion for FDIC Fund - WSJ.com
WASHINGTON — Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.
…The FDIC would be able to borrow as much as $500 billion until the end of 2010 if the FDIC, Fed, Treasury secretary and White House agree such money is warranted. The bill would allow it to borrow $100 billion absent that approval. Currently, its line of credit with the Treasury is $30 billion.
Once the obvious implications of this sink into the markets and the media, I expect all hell to be out for lunch. If an appendage of the banking industry like Chris Dodd is being instructed by his owners to increase their credit line by 1700% (!!!), it’s a dead (pardon the term) giveaway as to what shape the bankers think their businesses are in.
And once the general public understands this, bank runs wouldn’t surprise the hell out of me.
http://dailypundit.com/?p=34061
Bill Seeks $500 Billion for FDIC Fund - WSJ.com
WASHINGTON — Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.
…The FDIC would be able to borrow as much as $500 billion until the end of 2010 if the FDIC, Fed, Treasury secretary and White House agree such money is warranted. The bill would allow it to borrow $100 billion absent that approval. Currently, its line of credit with the Treasury is $30 billion.
Once the obvious implications of this sink into the markets and the media, I expect all hell to be out for lunch. If an appendage of the banking industry like Chris Dodd is being instructed by his owners to increase their credit line by 1700% (!!!), it’s a dead (pardon the term) giveaway as to what shape the bankers think their businesses are in.
And once the general public understands this, bank runs wouldn’t surprise the hell out of me.