[dragonwriter]

> Yes I’m aware of the insurance guarantee but I’m not aware that the FDIC has some self-imposed rule preventing them from doing more.

The “least-cost rule” is not a self-imposed FDIC rule, its a rule Congress imposed in 1991 after bank failures in the 1980s were felt to have been managed to expensively when the FDIC used funds to allow banks to stay open or otherwise protected uninsured depositors and creditors.

> and given they could just “throw it out” as they see fit.

They can’t. There is an exception available to the least cost rule, but that exception – the systemic risk exception – cannot be invoked by the FDIC, it can be invoked only by the Secretary of the Treasury, in consultation with the President, and with the support of 2/3 of the FDIC Board of Directors and 2/3 of the Federal Reserve Board.

[Rapzid]

Will investigate but I'm still hearing no rules were thrown out.