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Recursion

(56,582 posts) Thu Dec 18, 2014, 08:58 AM Dec 2014

My biggest takeaway from the amendment mess is that people think FDIC is taxpayer funded

I'm not sure why that's so stubbornly held, but the things I see most often are about how much risk this allegedly puts the taxpayer in, which is a step I still don't understand.

2 replies

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My biggest takeaway from the amendment mess is that people think FDIC is taxpayer funded (Original Post) Recursion Dec 2014 OP

There is an implicit taxpayer guarantee behind the FDIC guarantee Gothmog Dec 2014 #1

No, that's not what happened with TARP Recursion Dec 2014 #2

Gothmog

(145,321 posts)

1. There is an implicit taxpayer guarantee behind the FDIC guarantee

Reply to Recursion (Original post)

Thu Dec 18, 2014, 10:03 AM

Dec 2014

The FDIC is funded directly by assessments of the banks but if the amount of funds in the FDIC is insufficient to cover all resolutions, then the taxpayers are on the hook. That is what happen under TARP and the 2008 bailouts.

Recursion

(56,582 posts)

2. No, that's not what happened with TARP

Reply to Gothmog (Reply #1)

Thu Dec 18, 2014, 10:44 AM

Dec 2014

TARP didn't bail out any FDIC-insured banks. Some FDIC banks failed from the fallout and got taken over by the FDIC, but TARP was for investment banks.

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