Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

WSJ today: "Without government backing, U.S. community and regional banks stand to lose large deposits and customers to big banks already deemed too big to fail. In response, midsize banks are urging the government to insure all bank deposits for two years. Tuesday, Treasury Secretary Janet Yellen said more bank deposits could be protected.

A blanket deposit guarantee would stabilize banks, at a cost. It could draw funds from similar investments such as money funds that lack the guarantee, and it could effectively turn every bank into a government-sponsored enterprise. In the process, a key of the postcrisis regulatory push would go up in smoke: that the public should never again have to backstop the losses of private risk taking."