Re: Are E - Banks in trouble?
BTW any good refs on how the FDIC works? Is it taxpayer subsidized?
It seems to that starting a bank is this amazing free way to speculate with other people's money and get bailed out if you screw up. I believe the law is that you have to keep 5% of the deposits in cash, and the rest you can speculate with. If you do well, you keep the profit for yourself. If you screw up, oh well, close the bank and let the FDIC fix the mess.
I read some stuff about the history of the Savings & Loan crisis, where they had relazed a bunch of the rules in the years leading up to that, but even the stricter rules still just seem crazy loose.
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