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FDIC Coverage, Asset Titling, and Tax Planning in Response to the Emergency Economic Stabilization Act of 2008  


Author:  Caroline K. Craig.; Richard B. Toolson.


Source: Volume 26, Number 02, Winter 2009 , pp.28-48(21)




Journal of Taxation of Investments

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Abstract: 

The Emergency Economic Stabilization Act of 2008 (EESA) was signed into law on October 3, 2008 in an attempt to shore up the U.S. banking system and stabilize financial and credit markets in the midst of almost unprecedented turmoil resulting from the subprime mortgage meltdown that began during summer 2007. In addition to the federal government’s $700 billion bailout package of bank equity injections and purchases of “toxic paper,” securities collateralized by home mortgages issued to less than creditworthy borrowers, two other key provisions of EESA had an important and immediate effect on all interest-bearing bank deposits covered by the Federal Deposit Insurance Corporation (FDIC). These two provisions were (1) to increase immediately, but temporarily, the FDIC limit per account from $100,000, where it has stood since 1980, to $250,000 and (2) to grant the FDIC unlimited borrowing power from the U.S. Treasury on an as-needed basis.

Keywords: 

Affiliations:  1: Illinois State University; 2: Washington State University.

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