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When the government takes over a bank, they get that all the assets that go with it. Yes, at first the FDIC will pay out of its own coffers. But then the FED wi
by kyrra 3y ago
When the government takes over a bank, they get that all the assets that go with it. Yes, at first the FDIC will pay out of its own coffers. But then the FED will liquidate all assets at the bank and recoup much of their payouts.
And the fdic does not fill its coffers from tax revenue. It is funded entirely by required payments from Banks. The FDIC will raise its required fees from banks, and the consumers want paying through their banks, not through taxes or printing. Though it does hurt consumers in the end.
- londons_explore 3y ago> at first the FDIC will pay out of its own coffers But if its coffers run dry, the US treasury pays out.