Anorak News | A Bair In A Bear Market

A Bair In A Bear Market

by | 22nd, November 2008

LET’S hear it for the Federal Deposit Insurance Corporation, in general, and its’ Chair Sheila C. Bair in particular; the FDIC insures deposits at all 8,451 banks and savings associations in the US.

It was 8,454 yesterday, of course, but the FDIC seized Downey Savings & Loan Association and PFF Bank & Trust and sold the worthwhile bits to U.S. Bancorp.

The good news for Joe the plumber is that U.S. Bancorp also agreed as a condition of the deal to offer loan modifications to Downey and PFF customers under an FDIC formula, which means that home-owners will get the chance to hold onto houses they might otherwise have lost.

A similar deal was done with Community Bank of Loganville, which went to the Bank of Essex.

The best part of all is that the FDIC receives no income from the taxpayers; it’s funded by the banks themselves.

Perhaps we could persuade Ms Bair to give Gordon and England’s Darling a ring…


Posted: 22nd, November 2008 | In: Money Comment | TrackBack | Permalink