Healthy U.S. banks might be asked by the Federal Deposit Insurance Corp to lend billions of dollars to restore the health of the depleted fund that safeguards bank deposits.
While citing senior regulators, a well known paper explained, "The initiative, which has gathered strong support across the board, is seen as a more attractive alternative to tapping the $500 billion line of credit with the U.S. Treasury, or yet another emergency assessment."
The paper further reported that the FDIC was unwilling to ask the Treasury department for additional funds, because any new borrowing could be seen as a bailout, and have a strong political reaction.
Next week, a proposed plan in order to replenish the dwindling fund is predicted to issue by the FDIC, whose board members were yet to reach a consensus on the issue.
No comments could be obtained from the FDIC officials.












