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FDIC Folds—Federal Finances Foolishly Floundered
The Federal Deposit Insurance Corporation (FDIC) announced today that effective immediately they will cease all banking operations nationwide. The simple truth of the matter is that we just couldn't deal with this many banks failing all at once, said FDIC Chairman Sheila Bair. The government agency provided so-called deposit insurance for bank deposits up to $100,000. Created in 1933 during the Great Depression, the FDIC was intended to be a government-issued security blanket that would restore confidence in the banking system among the American people. Unfortunately, the agency was never granted enough power or funding to handle more than one or two minor bank failures per year. We never really expected this degree of crisis, explained Bair. I mean, who could have possibly predicted...