An op-ed article in today's New York Times on the latest bank bailout outlined the "vast swath of new powers" that will be given to the FDIC by the Treasury and foresaw the possible demise of "obscure regulatory animals," including the NCUA.
The article, written by Felix Salmon, a finance blogger for Portfolio.com, said that because Congress was in no mood to pass a new bank rescue package, the Treasury was forced to come up with an alternate plan that combines remaining TARP funds along with "a rather ingenious use of guarantees by the Federal Deposit Insurance Corp."
"Now, however, instead of insuring garden-variety bank deposits, the FDIC is going to insure extremely risky loans to curious new entities called public-private investment funds," wrote Salmon. "The FDIC has never taken on this kind of risk before."
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