FDIC to guarantee $1.4 trillion in bank debt

The Associated Press
updated 7:03 p.m. CT, Fri., Nov. 21, 2008

WASHINGTON - Federal regulators will guarantee as much as $1.4 trillion in U.S. banks' debt in a bid to get the distressed financial system pumping again. They also took steps Friday to make it easier for private investors to buy banks seized by the government.

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So if the banks lose money we (taxpayers) guarantee we'll give it back to them.

(That's 56 times the amount the automakers asked them to guarantee, to temporarily replace existing lines of credit that "evaporated" due to Federal DESTRUCTION of commercial lending sources. The auto makers do have a good record of paying off their loans as they become due. Bankers do not have such a history.)

That's on top of $300 Billion already payed out to banks.

(12 times the loan requested to save a few hundred thousand jobs.)

And the best the Senate (still Republican blocked) can recommend is that the automakers should file bankruptcy, and "just don't pay your debts."

John