CDARS, Moral Hazard & the FDIC

"Indeed, there seems to be an ominous reluctance in the mainstream media for bringing up CDARS in connection with the FDIC, even as the deposit insurance agency is struggling4 against the perception that it may require a bailout of its deposit fund. Nevertheless, if I’m reading the tea leaves correctly on this really obscure piece,2 there’s a serious war going on under the covers between an alarmed regulatory community and a lot of bankers who don’t want to see this particular moral hazard gravy train pulled off the tracks."