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> FDIC charges insurance premiums to banks In other words: the float is finite [1] No other source of financing? Someone mentioned "backstopped by the govern
by ur-whale 4y ago
> FDIC charges insurance premiums to banks
In other words: the float is finite [1]
No other source of financing? Someone mentioned "backstopped by the government". What does that mean? Unlimited credit line with the Fed?
[1] https://www.arnolditkin.com/blog/insurance/understanding-insurance-company-float/ https://www.arnolditkin.com/blog/insurance/understanding-ins...
- piperswe 4y agoFDIC is backed with the full faith and credit of the United States government, so in the event that they run out of money they will pay out of a "line of credit with the U.S. Treasury." - https://www.fdic.gov/consumers/assistance/protection/depaccounts/confidence/symbol.html https://www.fdic.gov/consumers/assistance/protection/depacco...