On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.
On October 14, 2008, the FDIC announced the creation of the Temporary Liquidity Guarantee Program (TLGP).
Although the FDIC will receive premium payments under certain conditions in return for providing the TLGP, this is ultimately back-stopped by the taxpayer. No prudent investor would arrive at any other conclusion after evaluating the FDIC's financial position (please see the October 1st post for details).
No comments:
Post a Comment