re: #40 J.D.
I’m worried about shenanigans like this. But first consider:
- Napolitano is given to fits of exaggeration
- Banks that offer FDIC insurance have to follow FDIC dictate
- Almost everything the govt does is extortion.
Now for what may be behind the FDIC move, this is what I’ve heard: The Feds are worried that “sick” banks will be abandoned for sound ones, and that may cause some of the “sick” banks like Citi to go under, or at least require billions more in taxpayer aid. They are trying to avoid this by forcing all banks to jump on the TARP bandwagon whether they need to or not.
Now I don’t put it past the power grabbers in Obama’s administration from biting off too much, given the (allegedly) dire situation that Obama doesn’t want to “waste” in his pursuit of anti-Capitalism. But this is something that can get hashed out in the courts. FDR lost tons of battles in the courts, and the Carter/LBJ era judges are becoming few and far between.