Saturday, July 26, 2008
Why is the FDIC insuring all deposits and then taking a $862 million charge?
In the latest bank failures of First National Bank of Nevada and First Heritage Bank, the FDIC is insuring all deposits including those over the FDIC limits while taking a $862 million charge. With more bank failures on the way would it have not been a better decision to limit the losses by paying out all insured deposits and uninsured deposits would get what was leftover from the asset sale. Is the FDIC is using these failures as a confidence builder after the IndyMac debacle?
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1 comment:
why is an insurance holding company subsidiary taking on bank deposits from a failed bank and why can an insurance company play with QSPEs and have less regulation from FDIC?
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