Rocco's silent turn on Morning Edition.

 

Rocco, concerned about changes to Section 23A

Patricia McCoy
 

An early warning?

If you read down to the last paragraph of this Federal Reserve press release you'll find a cryptic paragraph about changes to something called Section 23A of the Federal Reserve Act. The bottom line: The FDIC (which insures your bank deposits) could now be lending its stability to some of those dicey mortgage backed securities. If the FDIC runs out of money (and many worry its pool is too small) the government would likely step in.

And that's a bailout.

Even if it doesn't come to that -- the government is now in effect shouldering some of the risk of those mortgage bonds that everyone is calling toxic waste.

Here's the story.

If you listen closely you may be able to hear Patricia McCoy's dog Rocco ("18 pounds of pure testosterone") barking in the background of the interview. He was very upset about the financial crisis, and she had to lock him out of the room.

Thanks to Credit Slips for the tip.

categories: News

9:32 - September 16, 2008

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