The crux and craze of loan modification

The crux and craze of loan modification

March 9, 2009

Sen. Dodd proposes legislation to increase FDIC line of credit to $500 billion MortgagePress.comSenate Banking Committee, Christopher Dodd, Senate Bill 541, Federal Deposit Insurance Corporation, Ben Bernanke
Senate Banking Committee Chairman Christopher Dodd introduced
Senate Bill 541 to increase the borrowing power of the Federal
Deposit Insurance Corporation (FDIC) to $500 billion.
The FDIC's Treasury line of credit is currently limited to $30
billion. The bill follows a Feb. 2, 2009 letter from Federal
Reserve Chairman Ben Bernanke to Sen. Dodd stating that the
increased credit line "would allow the FDIC to respond
expeditiously to emergency situations that may involve substantial
risk to the financial system." The legislation, if passed, provides
an alternative to the FDIC's current proposal to raise banking
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