According to the NY Times, yes it is my favorite current newspaper, the FDIC is going to require banks to pony up more $$ in insurance deposits because they are forecasting over 86 more banks to fail this year alone (14 have done so already and over 100 total for the year are expected).
So essentially the government is giving banks money, then forcing them to give portions of it back, just so the government can then give it out again. I wonder how much of this money is getting lost through transaction costs, overhead costs and other misc. costs. Seems to me if you are going to hand out my money, at least just do it in one transaction, not a series of 3 where everyone skims something off the top. What is this, a boot-legged "charity" with high "administrative" bills?
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