Housing Bill gives the FDIC new power

From the Washington Post

Indeed, a little-noticed provision in the bill underscores the continuing pessimism about the state of the economy going forward. The provision gives the Federal Deposit Insurance Corporation authority to create so-called bridge institutions for failing savings associations, mirroring a capability that has existed since 1991 for failed banks.

The new power will give the F.D.I.C. more latitude to continue the operations of savings associations like California-based IndyMac, which failed earlier this month, and buy regulators time to work out a resolution at the lowest possible cost.