MikeK
Gold Member
(Excerpt)Glass-Steagall prohibited commercial banks from making investments with depositors' money, mainly because the safety of those deposits is protected by the FDIC and if an investment goes bad and the investor bank cannot absorb the loss it ultimately is incurred by the (FDIC) taxpayers.
Then it wouldn't have prevented the real estate bubble or crash.
The FDIC is funded by the banks.
In the current financial crisis, with Citibank alone carrying over a trillion dollars in liabilities, it seems pretty clear that a single failed mega-bank would force the FDIC to call on its credit with the U.S. Treasury. Considering that the FDIC had only about 19 billion in funds by the end of 2008, and is expected to collect only about 12-13 billion in FDIC premiums this year, it seems far from certain that the FDIC would ever be able to pay back $500 billion in federal loans.
NPR Check: FDIC is funded by banks
(Close)
Go here: www.openthegovernment.org/otg/dereg-timeline-2009-07.pdfBut there are many more, beginning with the ones Ronald Reagan repealed that led directly to the Savings & Loan scandal.
And there are plenty more such specifics available via Google.
Any specifics? Or just feelings?