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.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.