Hat tip to reader Camila for pointing out that Bloomberg's earlier editorial mistake in reporting the truth was subsequently mitigated substantially. The title of the original Bloomberg article was "Bair Says FDIC Reserves May Hit Zero Without New Fees", which was subsequently moderated to the current "Bair Defends Fee To Build Deposit Reserves Amid Bank Opposition."
The image below is a snapshot of the current Bloomberg article which is referenced by the Bair link disclosed earlier.
The original title was eliminated and the only remnant in Bloomberg's cache shows up in the title of the Bloomberg TV Interview with Bair that the article was supposed to reference, and that originally hit at 14:36:11.
And to all who say that the Treasury has this all under control, I would only interject that this is the kind of problem that can not be dealt with reactively, like the blow ups of Lehman and AIG. It will be amusing to see the Treasury print $6 trillion to cover the deposits as they get all electronically pulled... Which is why this is a proactive i.e. confidence problem. Once the train gets rolling it can not be stopped. As such, the prudent after-the-fact Bloomberg editorializing makes all the sense in the world.
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