Voltron says: because it's a quasi-legal end-run around an irate congress. The government always likes to cast it's bailouts as "insurance" because they can claim that it won't cost anything if they never have to pay out. With one hand the FDIC is assuming that they will not lose any money on the loans they will insure, but with the other hand, they are selling loans at 50 cents on the dollar. If genius is the ability to hold two contradictory thoughts in your mind at the same time, the FDIC chairman is clearly a genius.
http://www.nytimes.com/2009/04/07/business/07sorkin.html?_r=1
http://zerohedge.blogspot.com/2009/04/exposing-utter-hypocrisy-of-fdic-and.html
http://seekingalpha.com/article/128195-new-bailout-packages-an-end-run-around-congress
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