Wednesday, September 17, 2008


Hey, it’s the ‘Blogs are out of control’ Sheila again!

The fund, which is marking its 75th anniversary this year with a "Face Your Finances" campaign, is at $45.2 billion — the lowest level since 2003. At the same time, the number of troubled banks is at a five-year high.

FDIC Chairman Sheila Bair has not ruled out the possibility of going to the Treasury for a short-term loan at some point. But she has said she does not expect the FDIC to take the more drastic action of using a separate $30 billion credit line with Treasury — something that has never been done.

So Sheila has $45 billion in her checkbook and will, no doubt, order cake for her 75th Anniversary gala. Meanwhile, Washington Mutual is a $310 billion dollar bank. The article estimates that $20 billion of those assets (6%) are insured by FDIC. I don’t know if I believe that.

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