The crux and craze of loan modification

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 fees. For more information, visit www.fdic.gov.