“I’m sure there will be people who take the view that there shouldn’t be government intervention on any of this,” the aide said. Still, there is already disagreement over what constitutes a “bailout” and the fund being used to pay depositors - including over the $250,000 for standard insurance from the FDIC - is backed by “the full faith and credit of the United States government.”Īnd some conservative Republicans are already making the argument that covering depositors above the FDIC’s regular $250,000 deposit insurance limit is creating a future moral hazard and could embolden risky behavior heading forward.Ī GOP aide predicted that more conservatives would push that argument once they return to Washington and have more time to examine the details of Biden’s intervention. ![]() The president said the money to cover depositors would come from the fees banks pay into the Federal Deposit Insurance Corporation (FDIC) and promised that managers at failed banks would be fired and stock-holding investors would not be protected - sidestepping a fight with Congress.
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