FDIC Won’t Close Banks Due To Lack of Deposit Insurance?
By
Morr
on March 12, 2009 at 08:40 am
According to a reader of a South Florida Business Journal Article,
FDIC does not have enough deposit insurance to close BankUnited which should have been closed down in January, having violated the capital requirements in the Consent Order, this is the investigative story of the year the fact that the FDIC can’t shut down large troubled banks until the deposit insurance is raised which is the next bailout, in the interim they are relegated to shutting down tiny banks to conserve deposit insurance. Amazing no one has reported this.
Scary if true, but perhaps not surprising. Unfortunately, I think we’re going to need to see many more bank failures before we see a recovery.
