What’s a bank to do?

The FDIC has run out of insurance funds largely due to the 95 bank failures so far this year. They are looking at three options to replenish the fund:
• Borrow $35 billion from the Treasury. I’m not sure taxpayers would appreciate another big bailout for the banks, especially since the big ones are reporting multibillion dollar profits and bonuses. The media would have a field day.
• Borrow the money from the banks. This way they would get the money from the banks. But instead of it being an expense against capital, it would be an asset on their books. An asset when it is really an expense? Think Enron.
• Delay the decision by requiring the banks to pay their annual fee 3 years in advance (of course this is the one they have opted for). They get the cash from the banks to get through this year and the banks don’t need to account for it as an expense (yet). But what about next year and the year after when no money will be coming in from the banks? Think social security and Medicare on a shorter leash.

The option they are not considering is the one they are suppose to use by regulation which is assess the banks for their shortfalls. Ah, but those banks have lobbyists.