On September 24, 2009
Chris Whalen to Bloomberg: Shut up
Chris Whalen says the FDIC’s deposit insurance fund is in no danger of going kaput. The noted banking analyst sent an open letter responding to a piece today by Bloomberg columnist Jonathan Well saying the fund is “broke.” Presumably, the message is also aimed at other credulous financial journos (of which I seem to be one) echoing the theme. Fuggedaboutit, says Chris: Repeat after me: The FDIC does not run out of cash. The FDIC does not run out of cash. FDIC can confiscate all of the net assets and earnings of all FDIC insured banks. That is trillions in total. FDIC can borrow from Treasury, the Fed and even from FDIC insured banks. They can also issue notes. Our…
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