You have to be kidding me
I'm starting to believe that everyone in power over the last few decades were all completely incompetent: FDIC collected little in premiums.
Do these people have any idea how fucking insurance is suppose to work? You collect premiums to pay out later when you need it, and like most insurance companies you can be exposed to the six/ten/twenty sigma events that could destroy many past years of profits. For the love of non-existent god man:a booming economy left banks flush with cash, and by 1996 the insurance fund was considered so large that it could grow through interest payments and fees charged only to banks with high credit risk. Congress agreed that premiums didn't need to be collected if the fund was sustained at a level that was considered safe. Thus, about 95 percent of banks paid no premiums from 1996 to 2006
Emphasis added.
Seriously?!?! So why not just collect more premiums and put it away until you freaking need it. More premiums are a good thing. Jesus tap-dancing christ on a crutch.
ht: CR
9:17 PM | Labels: FDIC, personal finance | 2 Comments