So what if the bank fund is running out of money? I mean,
the president ordered administration officials to save $100
million in administrative expenses. So what's the big
deal? A million, a billion, a trillion. Who can keep
up?
So far this year, 77 lenders have been closed, compared with 25
in 2008. Of those, the F.D.I.C. has found buyers for 69.
Analysts are bracing for dozens of additional failures,
especially among small and medium-size banks that have made
huge numbers of real estate loans that are not being paid back.
The bulk of the fund's decline so far this year has come from
about $28.5 billion the agency set aside to cover the expected
losses from future bank failures.
Analysts are increasingly concerned the fund could be wiped out
if more bank failures drained the money the agency has set
aside to cover them. That could require the F.D.I.C. to tap a
multibillion-dollar lifeline from taxpayers, through an
emergency borrowing program run by the Treasury
Department, to finance loan sales and other short-term
obligations.
Oh well, a few billion dollars here, a few billion
dollars there. The rich can pay for it, just like they
can pay for health care "reform," cap-and-trade, and everything
else the Democrats want to do!