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Politics : Al Gore vs George Bush: the moderate's perspective -- Ignore unavailable to you. Want to Upgrade?

To: Selectric II who wrote (2372)	10/13/2000 8:01:50 PM
From: Zeev Hed	Respond to of 10042

Selectric, I think that there is a small misconception, the $40,000 (now $100,000) insurance is paid by the FDIC, and the FDIC is funded by the commercial (and in the case of SLIC, the S&L) banks. The actual payor are the depositors, the bank pays them out a little less than market rate (well, a lot less) and the difference (I do not know how much but it is not even .1%) is paid to the FDIC. In good times, that premium goes down since the funds in the FDIC are calculated to cover some given contingencies (bank failures). We, the tax payers pay non of this. As for the increase from $40,000 to $100,000 it did not cover the increase in inflation since the FDIC was first established. I think this is what we used to call a "canard" issue. As for the broadening of the S&L charter, that had nothing to do with the S&L failure, the tax change did. Zeev