FDIC Funding Request "Just In Case" Causes Anxiety With This Bank Customer

And it should ring some warning bells and raise some caution flags for other American account holders as usually as we've come to learn when banks or government crooks in Congress are getting ready to raid or rape the people one of the future rapists comes out in public and claims everything is OK, we're just making sure we're covered so you're covered.

What that means is you better be careful if you've got anything more than a $1000 in your bank you better keep an eye on things, as the FDIC just let us all know yesterday that things are not all Obama rainbows and Unicorns and they too need a couple hundred billion to remain solvent protecting our deposits..

Just remember they only insure up to $250,000 per depositor, per insured bank.

The $250,000 amount applies to all depositors of an insured bank.

That was all fine and dandy with me, right up until the Senate Banking Committee Chairman got filthy his paws involved. That mutt would be a dem senator who's a top flight crook himself, a "Super Duper Mortgage Deal" Recipient known as Christopher Dodd, who as most are aware received a sweetheart deal from Countrywide mortgage who Obama got much mileage out of by criticizing during his fraudulent campaign in exchange for some sweetheart legislation and other little insider goodies and perks we'll never know about as long as Obama and Pelosi are running the new Marxist Regime in the Old Washington DC.

And we all know as well that the Doddster's slimy fingerprints are all over the Fannie Mae and Freddie Mac failure so again keep your eyes on your dough no matter what the FDIC says is supposed to happen, as we know the rules have all been chucked out the window since the installation of Chairman Obama and what they say today could mean diddly squat tomorrow and they're not asking to make up new rules to keep covering their dirty asses with 500 Billion today when the law says only 300 billion (ONLY?) is allowed because things are peachy keen.

And remember the last time Dodd got out in front of the people and said "Don't Panic, there's no crisis at Fannie Mae"...The world financial meltdown came 2 months later, coincidence? I think not

Bill Seeks to Let FDIC Borrow up to $500 Billion -

WSJ.com:
"WASHINGTON -- Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.

The Connecticut Democrat's effort -- which comes in response to urging from FDIC Chairman Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner -- would give the FDIC access to more money to rebuild its fund that insures consumers' deposits, which have been hard hit by a string of bank failures."

Last week, the FDIC proposed raising fees on banks in order to build up its deposit insurance fund, which had just $19 billion at the end of 2008. That idea provoked protests from banks, which said such a burden would worsen their already shaken condition. The Dodd bill, if it becomes law, would represent an alternative source of funding.

Mr. Dodd's bill could also give the FDIC more firepower to help address "systemic risks" in the economy, potentially creating another source of bailout funds in addition to the $700 billion already appropriated by Congress.

Mr. Bernanke said in a Feb. 2 letter to Mr. Dodd that such a "mechanism would allow the FDIC to respond expeditiously to emergency situations that may involve substantial risk to the financial system."

The FDIC would be able to borrow as much as $500 billion until the end of 2010 if the FDIC, Fed, Treasury secretary and White House agree such money is warranted. The bill would allow it to borrow $100 billion absent that approval. Currently, its line of credit with the Treasury is $30 billion.

The FDIC's deposit-insurance fund has fallen precipitously with 25 bank failures in 2008 and 16 so far in 2009. Some bank failures have a bigger impact on the fund than others, as IndyMac's failure cost the fund more than $10 billion, while many others cost the fund less than $100 million.

A 1991 law generally caps the amount of money the FDIC can borrow from the Treasury at $30 billion, and the FDIC hasn't borrowed money from the Treasury in more than a decade.

Ms. Bair said a change in the law would give the FDIC more options to determine the best way to rebuild its depleted fund. In an interview, she stressed that all insured deposits were already backed by the "full faith and credit of the United States government."

A change in the law would ease "the mechanics of how seamlessly we can access our lines of" funding. "I'm the kind of person that likes to be prepared for all contingencies," she said.

---