The rent seeking connected bailed out banks are up to their old tricks again. WC Fields said never give a sucker an even break. The bankers got the American public once so why not go back to the well.

CNBC:

Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.

The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune.

A hallmark of the financial crisis has been the decision by successive administrations over the last year to lend hundreds of billions of taxpayer dollars to large and small banks.

My comment: Of course the greasy bankers support this, it is a complete foolproof layup of a way to make money. If you are one of the large connected banks you can borrow money from the Federal Reserve at literally zero percent and then loan it to the FDIC for some percentage lets say 5%. The FDIC will then use the money to bailout more insolvent banks. The kicker is this risk free because the FDIC already has a $500 billion dollar borrowing window at the US Treasury. The banks make a risk free spread and the US Treasury has all the risk. Where is my "Little Bankers Kit" which includes a bank charter, former Goldman Sachs banker, Rolodex of Washington lobbyists, and batline to the US Treasury Dept. I want to make free money and pay myself a hundred million dollar bonus. When the people do wake up I would not want to be one of these slimy bankers or a greasy politician. This is why I advocate that if you bank with one of these bailout banks you withdraw your money and bank with a Credit Union or a local bank.

John Polomny
The Real Deal