http://www.lewrockwell.com/sardi/sardi117.html
FDIC Walks a Tightrope
by Bill Sardi
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Bair’s second assignment is to slowly put small insolvent American banks out of business, over a thousand of them, while fostering public confidence in the FDIC insurance company’s ability to insure the public’s money. The FDIC admits to only 416 on the agency’s “problem bank” list. Frankly, without bailout money, few banks would have adequate reserves. By collapsing small banks, depositors are likely to bank their money at larger institutions. So Bair is really a shill for the large bankers to rub out their smaller competition, though she may have no other option in this instance.
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So, why if “too big to fail” is bad, does the gooferment limit the size of a single bank to say ONE ONE THOUSANDTH of it’s reserve. And, oh by the way, why doesn’t it have a REAL RESERVE? Not so IOU from the FED or the Treasury.
Argh!
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Reinke Faces Life 