They too shall be taken over by the fed. Of course none of htis is actually on the public books are the national debt would be many trillions higher than they are saying. don’t forget page 2’s morsel, “But Whalen said the Federal Reserve, the Treasury and Congress should “immediately devise” and announce a plan to backstop the FDIC with up to $500 billion in borrowing authority to meet cash needs for closing or selling failed banks.
“While the FDIC already has a credit line in place and this figure may seem excessive — and hopefully it is — the idea here is to overshoot the actual number to reinforce public confidence,” Whalen wrote in a note to clients. “Simply having Treasury Secretary Hank Paulson or Ben Bernanke making hopeful statements is inadequate. Like it says in the movies: ‘Show us the money.'”