FDIC Head Sheila Bair Attempts to Quell Crisis of Confidence
In the following video Shelia Bair cites this year’s 100th bank failure, she goes on to assure Americans that the banking system is sound and that people should leave their money in the banks and not worry about it. What she doesn’t say in the video is that technically there have been over 2,000 bank failures because most of the 100 that have failed had at least several branches. In some cases some of the banks had dozens of individual branch locations.
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Another thing she neglected to say in the video is that the FDIC is out of money. A few days ago Bair testified before the Senate Banking Committee that the bank fund will be in the red until 2012, she also said her agency was doing everything possible to replenish the dwindling fund.
How can people have faith in the banks when the very agency that exists to safeguard them, the FDIC, can’t legitimately bail out failing banks without operating in the red? It definitely creates a crisis of confidence in the system. People would be far better off taking their dollars and buying gold or silver than leaving their money at the mercy of the FDIC and the U.S. banking system.