Economics/Class Relations

Washington quietly prepares a bank rescue — just in case

Not a penny for the money-changers. Mutualize the banksters.

By Zachary Warmbrot

Politico

Tucked inside Congress’ $2 trillion economic rescue package for America is sweeping authority for the government to come to the aid of the one industry that has insisted it doesn’t need a bailout: the big banks.

Lenders that the government saved in the 2008 financial crisis have been touting the strength of their balance sheets heading into the coronavirus pandemic. But Congress is backstopping them anyway with a provision in the bill that would give the Federal Deposit Insurance Corp. power to guarantee checking accounts beyond the $250,000 in deposit insurance that it now offers bank customers.

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