Default is coming: Treasury cash drops to $112 Billion. The FDIC line of credit is $100 billion

112 Billion left before default.

Source: Treasury.gov

 

via thehill:

The FDIC is authorized to borrow up to $100 billion from the U.S. Treasury. It is required to repay the loan with interest using the proceeds of asset sales from failed bank receiverships. While the FDIC could have tapped this line of credit to help fund the SVB and Signature Bank failures, the Treasury’s general account balance with the Fed is down to about $278 billion, and the Treasury needs these balances to pay the Federal government’s expenses since it is precluded from issuing any new debt by the congressional debt ceiling.

 

 

h/t jlee2027