Your bank account may not be insured


More examples of government shenanigans with your money
Remember all those promises about the Federal government preserving the value of your home?

That's what made this one so telling.

It turns out right now, the Fedgovs can't even guarantee your bank account. Emphasis added.

The head of the Federal Deposit Insurance Corporation, Sheila Bair, in a letter to bank chief executives dated March 2, defended the FDIC's plan to raise fees on banks and assess an emergency fee to shore up the fund and maintain investor confidence.

Bair acknowledged the new fees, announced Friday, would put additional pressure on banks at time of financial crisis and a deepening recession, but insisted they were critical to keep the insurance fund solvent and protect.

"Without these assessments, the deposit insurance fund could become insolvent this year," Bair wrote.
The FDIC chief said in the letter that the rapidly deteriorating economic conditions raised the prospects of "a large number" of bank failures through 2010.

So let's just make sure I have this straight.

When we don't need the insurance, we have to pay it.

When we do need the insurance, there's no money to back up the promises.

No privately owned insurance company would be allowed to pull this nonsense.

So we have different rules for government entities.

Which is what made the Fannie Mae and Freddie Mac meltdowns possible.

And the solution is more government control?

— NeoWayland

Posted: Mon - March 9, 2009 at 02:07 PM  Tag


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