Checkbook ready!
The FDIC is bitching and moaning as B of A is transferring $53 trillion in toxic derivatives from the holding company and Merrill Lynch to the bank proper which is, of course, guaranteed by the FDIC, at least for the $1 trillion in deposits there.
But Bernanke and the Fed are all on board. Since the Fed doesn't have the nerve right now to print up more green, it looks like Congress will be forced to cover some of the losses with tax dollars, via the FDIC. That might kick the can down the road for another few months or so.
If an FDIC bailout is necessary, we will await the Congressional tea party and the GOP candidates reaction with some relish, anticipating moments of sparkling humor.
But Bernanke and the Fed are all on board. Since the Fed doesn't have the nerve right now to print up more green, it looks like Congress will be forced to cover some of the losses with tax dollars, via the FDIC. That might kick the can down the road for another few months or so.
If an FDIC bailout is necessary, we will await the Congressional tea party and the GOP candidates reaction with some relish, anticipating moments of sparkling humor.
posted by Dick Durata at 7:03 PM
1 Comments:
A trillion here...a trillion there...soon you're talking about real money.
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