Exploiting FDIC Loopholes Enriches Former U.S. Bank Regulators

Ex FDIC Chief of Staff founded a company that "makes it easy for a wealthy depositor to keep FDIC-insured cash in separate accounts at multiple banks." -- up to $50 million.

Says one economist:

``When I first saw Promontory, I was amazed that the regulators would let it fly,'' says Sherrill Shaffer, a former chief economist at the New York Federal Reserve Bank. ``It undermines a lot of the safeguards around the FDIC deposit fund. I'm astounded that the FDIC has not picked up on that and tried to shut down that loophole.''

Nothing like gaming the system for profit! Hey, some might argue that is what the system is there for!