Quote Originally Posted by palmerq View Post
Well that was in the article posted in Sunday,

"But a Treasury official said Sunday that regulators ultimately decided to move forward with the plan to make depositors whole, in part because it was proving to be challenging for a potential buyer to vet the bank’s books by Monday."

So they just decided they were going to cover it all, the funding is claimed to come from this method;

"The F.D.I.C. is usually supposed to clean up a failed bank in the cheapest way possible, but regulators agreed that the situation posed a risk to the financial system, which allowed them to invoke an exception to that rule. The regulator will tap the Deposit Insurance Fund, which comes from fees paid by the banking industry, to make sure it can pay back depositors.

The agencies said that “any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.”"
thanks. has the fdic rerseve fund ever been fully funded? how much is the fdic usually short of it's total insurance exposer? i heard the fdic was granted the power to borrow over five hundred billion from the treasury department. would that make it back by the federal reserve?