That's the word of Sheila Bair, head of the FDIC, when talking about the role of the FDIC in Geithner's plan. She went on, “Our accountants have signed off on no net losses.” These comments remind Andrew Ross Sorkin of the comments of Joseph Cassano of AIG, “It is hard for us, without being flippant, to even see a scenario within any kind of realm of reason that would see us losing one dollar in any of those transactions.” What dream world is she living in?
The FDIC is exceeding the limits of their charter which says that they can risk $30 billion, but no more. Yet the FDIC is taking on a risk of $1 trillion under the Geithner plan. They are able to do this because they are valuing the loans on what they think they may lose. Huh? To quote Sorkin: "By this logic, though, the F.D.I.C. appears to have determined it can lend an unlimited amount of money to anyone so long as it believes, at least at the moment, that it won’t lose any money.'
Why isn't there any other comment on this potential liability to us? This is an outrage.
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