Bill would temporarily expand FDIC's borrowing power

03/9/2009 | CNNMoney/Fortune

Chris Dodd, chairman of the Senate Banking Committee, and Sen. Mike Crapo, R-Idaho, introduced a bill that would give the Federal Deposit Insurance Corp. temporary power to borrow as much as $500 billion from the U.S. Treasury to shore up the fund. FDIC Chairwoman Sheila Bair, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke urged Dodd to support the expansion of the FDIC's authority. "This mechanism would allow the FDIC to respond expeditiously to emergency situations that may involve substantial risk to the financial system," Bernanke wrote in a letter to Dodd.

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