Political Quotes

“I was recently approached, along with my colleague Senator Shelby and leaders of the House Financial Services Committee, by the Chairman of the Federal Deposit Insurance Corporation, Sheila Bair, with a request to increase the FDIC's borrowing authority from Treasury from the current $30 billion to $100 billion, for use by the FDIC's Deposit Insurance Fund, and for temporary additional borrowing authority to weather the economic crisis. The FDIC's Deposit Insurance Fund, DIF, absorbs losses that result from the Corporation's obligation to protect insured deposits when FDIC-insured financial institutions fail. Insured financial institutions pay premiums that support the DIF and under current law those premiums can be increased to cover any losses to the fund. At the end of the third quarter of last year, the fund held approximately $35 billion. Legislation to substantially and permanently increase this borrowing authority has already passed the House, as part of the TARP legislation passed in January.”