After days of administration promises that there would be no bank bailout, we learn that there is indeed a bailout in the works (“Biden’s ‘bailout’ a step toward government control of banking system, economists say,” web, March 13).
We might explore the fiscal legality of President Biden’s decision to reimburse woke and wealthy depositors with more than $250,000 in their accounts.
As the name implies, the Federal Deposit Insurance Corp. is actuarially funded based on fees adequate to insure deposit accounts up to $250,000.
Arbitrarily paying wealthy depositors five or 10 times that amount is as reckless as expecting that the $128 billion FDIC fund will somehow cover $240 billion in uninsured deposits. It will bankrupt the FDIC until the FDIC balloons insurance rates for remaining banks, with the costs subsequently passed onto retail banking customers.
Ultimately the Biden bank bailout is a redistribution of wealth to the wealthy.
WILLIAM T. FIDURSKI
Clark, New Jersey