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Get Ready for the Next Bank Bail-Out--of the FDIC

By Doug Bandow on 8.24.09 @ 7:36AM

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?

Reports the New York Times:

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!