More Brilliance from Congress
What next?The Federal Deposit Insurance Corporation, which insures deposits up to $250,000, tried for years to get congressional authority to collect the premiums in case of a looming crisis. But Congress believed that the fund was so well-capitalized - and that bank failures were so infrequent - that there was no need to collect the premiums for a decade, according to banking officials and analysts.
I won't bore you with all the possible consequences. Read the whole thing for those.
Barney Frank displays his usual genius:
House Financial Services Committee chairman Barney Frank agreed that officials believed at the time that the good times would last and that bank failures would not be a problem.
"We had this period where we had no failures," the Massachusetts Democrat said in an interview yesterday. "The banks were saying, 'Don't charge us anything.' "
Which officials dissented, I wonder?
posted by Alan Adamson @ 11:14 AM
0 Comments:
Post a Comment
<< Home