Oh. The. Irony.

By Geert De Lombaerde Posted on September 22, 2009 at 10:49 am

Stephen Labaton at The New York Times says regulators are seriously considering turning to bank loans as a means of replenishing the FDIC’s reserve fund.

“Borrowing from healthy banks, instead of the Treasury, has the advantage of keeping this in the family,” said Karen M. Thomas, executive vice president of government relations at the Independent Community Bankers of America, a trade group representing about 5,000 banks. “It is much better for perceptions than having the fund borrow from somewhere else.”

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Tags: banking, Federal Deposit Insurance Corp., financial regulation, government debt, lending, loan losses  

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