Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Treasury Co Signs The Fdic's Loan Plan


In Business This Week

TREASURY CO-SIGNS THE FDIC'S LOAN PLAN

The Treasury Dept. has adopted a plan proposed by the Federal Deposit Insurance Corp. to replenish the dwindling bank-insurance fund. In a broad legislative package on bank reform released on Mar. 20, Treasury proposed allowing the FDIC, which runs the bank fund, to borrow up to $25 billion from the Federal Reserve system to bolster and dispose of troubled banks. Banks would pay back the Fed loans with premiums capped at 30~ per $100 of insured deposits paid to the bank-insurance fund.

Obtaining the additional money from the Fed has the political advantage of avoiding a direct levy on taxpayers. But any loan losses could ultimately wind up expanding the federal budget deficit.EDITED BY HARRIS COLLINGWOOD


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus