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Wednesday, October 01, 2008

Bailout Bill will Allow FDIC to Borrow Unlimited Amounts from Treasury

by Calculated Risk on 10/01/2008 11:32:00 AM

From the WSJ: Revised Bill Lets FDIC Borrow Without Limits

The Senate financial market rescue bill would temporarily allow the Federal Deposit Insurance Corp. to borrow unlimited amounts of money from the Treasury Department in connection with the larger government deposit coverage that would extend until the end of next year.

This is important because it would increase the backstop that the FDIC has to make sure that insured depositors can be repaid if their bank fails.
The WSJ has the full text of the revised bill.