[dragonwriter]

> The FDIC managed the entire thing, backed all the maneuvers with their 128bn fund, is independent and reports to the POTUS, and is entirely funded by deposit insurance fees on the financial industry. The FED had its own opinions on the whole situation I’m sure, and provided a short-term liquidity loan to the FDIC, but it’s a bit misleading IMHO they way their involvement is discussed.

So you are saying that the decision to invoke the systemic risk exception and cover all depositor funds despite the least cost rule was an independent decision of the FDIC and not, as the law requires, a decision made by the Secretary of the Treasury, in consultation with the President, backed by supermajorities of both the Fed board and the FDIC board?

Strange that that’s not what the joint Treasury/FDIC/Fed press release said.