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Furthermore, the banks will pay for it: > Any losses to the [FDIC’s] Deposit Insurance Fund to support uninsured depositors will be recovered by a special asse
by mmoustafa 4y ago
Furthermore, the banks will pay for it:
> Any losses to the [FDIC’s] Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
- kqr2 4y agoBut banks will just pass this onto account holders either through lower interest rates or higher banking fees. So taxpayers with bank accounts are going to pay for this indirectly.
- baal80spam 4y agoOf course!
- xenadu02 4y agoYeah but look at the FDIC historical data on "dividends" (FDIC's term for uninsured depositor paybacks). Lots of cases have >90% payback rates... they just take years to do so. This whole operation is just a short term backstop to prevent a bank panic. By promising 100% with no delay everyone can calm down. And the cost of 100% immediately vs 96% within 5 years isn't that high.
- cm2187 4y agoThat's called a tax.