Tuesday, September 30, 2008

Without a Bailout Plan, What Will the Cost Be? - TIME

Without a Bailout Plan, What Will the Cost Be? - TIME: "But orderly isn't the same as cheap. To get Citigroup to absorb Wachovia, the FDIC agreed to share the risk on a $312 billion portfolio of loans (Citi has to eat the first $42 billion in potential losses; anything above that hits the FDIC fund).

Also, the fact that every big FDIC deal so far in this crisis has been different — IndyMac was allowed to fail, with only insured deposits safe; WaMu was seized, but all depositors were protected;"

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