Obama Seeks Guarantees for Risky Investments
U.S. President Barack Obama proposed that banks put up funds to guarantee risky investments in order to avoid putting more government money at risk.
Asked about whether he supported a fee on risky transactions, Obama recalled that the Federal Deposit Insurance Corporation (FDIC) already guarantees deposits in banks up to 250,000 dollars.
"We may need to make sure that there is a similar mechanism in place for some of these other far-out transactions," Obama told reporters during a prime-time news conference.
"So if you guys want to do them," he added in comments addressed to bankers, "then you've got to put something into the kitty to make sure that if you screw up, it's not taxpayer dollars that have to pay for it, but it's dollars coming out of your profits."