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0 pointspyalot212y ago0 comments

Why would the FDIC need a $50b fund, if it's backed by "the full faith and credit" of the US?

They wouldn't need any funds at all. Whenever they needed money, they'd just ask the Fed.

So, what's the $50b for, really? Or maybe, "full faith and credit" doesn't really mean what you think it means, maybe it means: "full faith and credit... maybe, in the meantime use this $50b fund while we make up our mind"

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Tuna-Fish12y ago

It's set up as an insurance to which the banks pay premiums to cover the losses. The $50B fund exists to prevent the american public from having to step up every time, however, it is backstopped by full faith and credit.

pyalot2OP12y ago

So "full faith and credit" if congress republicans and democrats can agree, that's all fine then.

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