Kool Aid Lives On

'“The reason why the FDIC came down on FMT is some combination of the fact that banks want to get rid of ILCs any way they can, and the FDIC wants to maintain some vestige of credibility as a regulator. Applying Prompt Corrective Action to a bank that’s not a member of ‘the club’ is a safe way to do that. It shows how PCA would work if the regulators actually did it, but the chances of regulators regulating banks are about the same as the chances that a kangaroo will play the tuba.” '