La Jolla Real Estate,
Del Mar real estate,
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real estate, homes and condos for sale in California - Ruth Mills & the Mills Team, REALTOR.
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Senior government regulators have been seriously considering a proposal which would have the nation's strongest banking institutions make loans in the billions of dollar to the government which would save the insurance fund intended to protect bank depositors.
The move would assist the fund which is running out of funds quickly as a result of many bank failures; continue to assist with future failures.
A major factor in the recovery efforts of the recent economic crisis is the move by the current administration to lend billions of taxpayer dollars to bail out both large and small banks. This plan would mark a major reversal of fortune, has the support of banker and their lobbyists.
The FDIC (Federal Deposit Insurance Corporation) is responsible for the oversight of the insurance fund is reluctant to tap into an existing credit line of one hundred billion dollars which is available to them from the U.S. Treasury. Any new borrowing of funds from the Treasury could be viewed as a bailout by the taxpayers, leaving the banking industry open for political criticism and intervention.
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