FDIC Archive

Comments on Senator Sanders article on the Fed

Dear Senator Sanders, Thank you for your attention to this matter! My comments appear below: The Veil of Secrecy at the Fed Has Been Lifted, Now It’s Time for Change By Senator Bernie Sanders November 2 (Huffington Post) — As a result of the greed, recklessness, and illegal behavior on Wall Street, ...Read More

Next Debt Crisis May Start in Washington: Bair

She’s as much a part of the problem as any of them. Also, she continues to support taxing banks for FDIC losses, which works counter to Fed rate setting policy. Across the board taxes on banks hike rates charged to borrowers, while the Fed is trying to get them down. Also, why ...Read More

FDIC Proposes Long-Term DIF-Management Plan

The FDIC taxing banks to cover losses hasn’t been well thought out. A universal bank tax is functionally equivalent to an interest rate hike for borrowers that doesn’t get passed through to savers. FDIC Proposes Long-Term DIF-Management Plan The FDIC board of directors proposed a long-range Deposit Insurance Fund management approach that ...Read More

Chairman Bernanke address to students

Bernanke says more Fed asset purchases could help October 4 (Reuters) — The Federal Reserve’s asset purchases lowered borrowing costs and supported the economy, and more buying could further ease financial conditions, Federal Reserve Chairman Ben Bernanke said on Monday. He leaves out the negative influence of the interest rate and fiscal ...Read More

Citibank saga draft

The Unspoken Macro of the Citibank Saga I’m writing this because it’s how it is and I haven’t seen it written elsewhere. Let’s assume, for simplicity of the math, Citibank pre crisis had $100 billion private capital, $900 billion in FDIC insured deposits, and $1trillion in loans (assets), which is a capital ...Read More

FDIC – Lets save

In case you thought Shiela Bair understands banking and the monetary system. All this can do is further reduce aggregate demand. The entire administration including the Fed and Tsy seems hopelessly mired in gold standard economics. FOR IMMEDIATE RELEASE February 22, 2010 Media Contact: Greg Hernandez (202) 898-6984 Cell: (202) 340-4922 Email: ...Read More

Fixing the small banks

[Skip to the end] Fixing the Small Banks The Obama administration has been preaching the importance of fixing the small banks and getting them lending again. This will review what I see as the critical issue and how to fix it. First, the answer: 1. The Fed should loan fed funds (unsecured) ...Read More

FDIC fee proposal

[Skip to the end] Regarding FDIC fees, the smaller the better, so nice to seem them sort of moving in that direction. All they do is raise rates as they raise the common cost of funds for banks, and Fed policy is to lower rates. Be nice to have leadership that understands ...Read More

Proposals for the Banking System, Treasury, Fed, and FDIC (draft)

Proposals for the Banking System, Treasury, Fed, and FDIC (draft) ...Read More


[Skip to the end] The FDIC gets the funds from the treasury as needed and then tries to tax the banks to pay it back. All that does is raise the marginal cost of credit via a transfer to the govt. Which reduces aggregate demand. Just one more example of a confused ...Read More