On: U.S. regulator set to take over First Republic

[hayksaakian]

FDIC charges insurance premiums to banks

[ur-whale → hayksaakian]

> FDIC charges insurance premiums to banks

In other words: the float is finite [1]

No other source of financing? Someone mentioned "backstopped by the government". What does that mean? Unlimited credit line with the Fed?

[1] https://www.arnolditkin.com/blog/insurance/understanding-ins...

[piperswe → ur-whale]

FDIC is backed with the full faith and credit of the United States government, so in the event that they run out of money they will pay out of a "line of credit with the U.S. Treasury." - https://www.fdic.gov/consumers/assistance/protection/depacco...