Hacker News Reader

Who eats the cost of their salaries after FDIC took over and deferred bankruptcy?

Will there be corporate assets left after all the debtors are paid back (customers, vendors, etc), such that shareholders eat this? If not, does that mean FDIC carries the risk of having to pony up? Or will debtors take a haircut?

View on HN

The FDIC is funded by premiums paid for by the insured banks. It doesn’t rely on tax payer money.

Once that is depleted, they are allowed to tap into Fed money

I’m sure you are aware but just to spell it out: fed money is _also_ not taxpayer money, it’s self-funded.

Where does the fed get the money?

They print it.

By slightly devauling every other dollar in existence.

Reply on news.ycombinator.com