FDIC At Risk

[Pommer]

I say eliminating waste is good. All tge banks could just replace thier FDIC stickers to Treasury sticker. Your money is now insured by the US Treasury. After a while no one will notice and life will go on and everyone's money will be insured.

Without a corporation in between the Treasury and the market , though, this is socialism of the banking industry. (Government owning the means of production!)

 

[Astrid]

Better to nip it, the idea, in the bud. We know that Trump is bent on eliminating regulations.

Two questions-

What Idea are you speaking of.?

Are all regulations necessary and good?

 

[tampasteve]

Without a corporation betwixt the government and the market, wouldn’t this be tantamount to socialism?

What are you talking about? The FDIC is a governmental agency, swapping from the FDIC to a Treasury department is one agency for another, this has nothing to do with socialism. The FDIC isn't a corporation like any other business, it is not a private business corporation - it is still owned by the government even though it is nominally independent.

Think of it as brand recognition. FDIC has been the face of protecting those with deposits at banks for decades. If the face is gone the trust is reduced. If just 10% lose faith in the system then a rumor would trigger a run on a bank.

It is also worth noting that the FDIC rules revolve around a single issue, protecting depositors. Instead that would be replaced by treasury which would have multiple concerns. That raises the significant possibility that at least some of the time the primary concern will not be the safety of depositors.

Thank you for explaining your position to me, I however still disagree. To be honest I would believe that the amount of Americans that even know that there is an FDIC is minimal. Further, I really don't see that combining the FDIC into the Treasury is an issue. Most Americans won't even notice that there is a change.

 

[Astrid]

Who was president in 2011?

https://obamawhitehouse.archives.gov/node/73651

 

[Astrid]

What are you talking about? The FDIC is a governmental agency, swapping from the FDIC to a Treasury department is one agency for another, this has nothing to do with socialism. The FDIC isn't a corporation like any other business, it is not a private business corporation - it is still owned by the government even though it is nominally independent.

Thank you for explaining your position to me, I however still disagree. To be honest I would believe that the amount of Americans that even know that there is an FDIC is minimal. Further, I really don't see that combining the FDIC into the Treasury is an issue. Most Americans won't even notice that there is a change.

This thread sure shows that there’s no surplus of
financial or political sophistication going in in America.

 

[Always in His Presence]

Without a corporation in between the Treasury and the market , though, this is socialism of the banking industry. (Government owning the means of production!)

Huh?

FDIC. Federal Department Insurance Corporation

About | FDIC.gov

The FDIC is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system.

www.fdic.gov

Notice the website? It is a government website.

I’ll give you this:

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system.

But look who they report to

In accordance with the provisions of section 17(a) of the Federal Deposit Insurance Act, the FDIC submits its Annual Report to the President of the United States, the President of the U.S. Senate and the Speaker of the U.S. House of Representatives.

They are appointed by the President and report directly to the President and Speaker of the House

They are as Government as Government gets.

 

[Pommer]

Huh?

FDIC. Federal Department Insurance Corporation

About | FDIC.gov

The FDIC is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system.

www.fdic.gov

Notice the website? It is a government website.

I’ll give you this:

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system.

But look who they report to

In accordance with the provisions of section 17(a) of the Federal Deposit Insurance Act, the FDIC submits its Annual Report to the President of the United States, the President of the U.S. Senate and the Speaker of the U.S. House of Representatives.

They are appointed by the President and report directly to the President and Speaker of the House

They are as Government as Government gets.

Okay…a bank fails, depositers’ money (up to the paltry $250,000) is insured, yet this insurance isn’t paid by the government, but by the member-banks. Eliminating the Federal Deposit Insurance Corporation puts the burden back onto the public.

 

[tampasteve]

Okay…a bank fails, depositers’ money (up to the paltry $250,000) is insured, yet this insurance isn’t paid by the government, but by the member-banks. Eliminating the Federal Deposit Insurance Corporation puts the burden back onto the public.

There has been nothing stated that implies the system that is in place to have the banks pay into the insurance would change.

 

[Pommer]

There has been nothing stated that implies the system that is in place to have the banks pay into the insurance would change.

To which governmental entity should the banks make their payments?