More Homeowners Rescued by FDIC

An earlier post mentioned the benefits of letting banks fail. This NPR article discussed interest-rate reductions given to some borrowers facing foreclosure. In this case, the FDIC gave these breaks after taking over IndyMac Bank. Update: This article discussed an FDIC proposal to help up to 3 million homeowners that could be “…the biggest event we’ve seen here as far as helping people avoid foreclosure.” This article covered some of the pitfalls of executing such a proposal—the possibility of helping people who were (or are) simply greedy and failing to help people who were duped into borrowing money.

Tags: Economics, Politics

Updated at: 30 October 2008 12:10 AM