Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Not sure how "taxing depositors at other banks to pay for uninsured deposits" is "reasonable operation of the FDIC".

(And yes, it's taxing the depositors. Because even if it's "officially" a fee to the other banks, it will be trickled down to their customers through lower interest rates and higher fees rather than absorbed.)

If this was necessary to recover insured deposits, that would be reasonable. But instead, the people who made poor decisions aren't going to lose anything, because the extra money is coming out of the pockets of everybody else with money in banks.



They invoked this exception repeatedly during the financial crisis and fees did not go up in response. In fact, they all but disappeared.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: