How Did The FDIC Model Work for the US in 2008?

How did the FDIC model work for the US in 2008? It didn't. That is a question that Bob Corker, Mark Warner, and Jeb Hansarling should be held accountable to answering before any of their proposals even reach committee. GSE critics' entire argument for an insurance model rests upon a design that failed during the crisis. It is merely common knowledge that the majority of large banks required bailouts during the subprime mortgage crisis, while global banks, with similar FDIC models, also required major bailouts. In addition, one only need to look as far as Sallie Mae to see the results of a fully privatized loan system, where students are charged 8 times the interest rate since privatization occurred, and the institution has stacked trillions of dollars in debt, at risk of causing another financial crisis -- requiring government/taxpayer bailout. When banks are committing trillions of dollars in fraud, raising interest rates on Americans, and manipulating congress to go along with their plan, does it really matter what kind of backstop is used?

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