FDIC Conductor Wields a Steady Hand - washingtonpost.com
source: http://www.washingtonpost.com/wp-dyn/content/article/2008/10/01/AR2008100103263.html?wpisrc=...
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- starr111
- added this
Hundreds of people desperate to withdraw money lined up outside the branches of IndyMac Bancorp after the California bank was seized in July by the Federal Deposit Insurance Corp.
FDIC officials were stunned. The bank now belonged to the federal government. The deposits were insured by the FDIC. Bank runs were supposed to end once the government arrived.
"It had just been so long since there had been a significant bank failure in the U.S.," FDIC Chairman Sheila C. Bair said in an interview yesterday. "People had just forgotten that banks fail."
And, she added, they had forgotten about the FDIC.
Three months later, Bair and her agency have moved to the forefront of the government's response to the financial crisis. Observers say the FDIC's recent actions may offer the best hope for limiting the consequences of the crisis.
FDIC officials were stunned. The bank now belonged to the federal government. The deposits were insured by the FDIC. Bank runs were supposed to end once the government arrived.
"It had just been so long since there had been a significant bank failure in the U.S.," FDIC Chairman Sheila C. Bair said in an interview yesterday. "People had just forgotten that banks fail."
And, she added, they had forgotten about the FDIC.
Three months later, Bair and her agency have moved to the forefront of the government's response to the financial crisis. Observers say the FDIC's recent actions may offer the best hope for limiting the consequences of the crisis.
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- tags:
- Economy, Wall Street, Federal Reserve, Bank, 6 more
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1percent
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As far as I know, the FDIC's reserves stand at approx 42 billion dollars.
How do they expect to cover more bank failures when raising the limit to $250,000.
Failure is imminent.
Embrace the chaos!
Ride on!
- 3 years ago
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1percent
