I thought the FDIC was for protecting my bank deposits, not for lending money to hedge funds to buy toxic assets with
[T]he Federal Deposit Insurance Corporation will set up special-purpose investment partnerships and lend about 85 percent of the money that those partnerships will need to buy up troubled assets that banks want to sell.
The goal of the plan is to leverage the dwindling resources of the Treasury Department’s bailout program with money from private investors to buy up as many of those toxic assets as possible and free the banks to resume more normal lending.
(See the update here to that idea.)
But seriously, is that the purpose of the FDIC?
Honestly, it looks like these guys are just grabbing any pile of money they can find and throwing it at the banksters; thank gawd that "entitlements reform" summit got stopped, or else they'd be throwing Social Security into the enormous hole (unless they're doing that without telling us, of course. For our own good).
Then again, there's the FDIC's "systemic risk exception" -- a long post somebody smarter than I am should read and factor in.