![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgCYNWC5DGBpHjCdw-SBWnojZKFujInU3sz0Jsnjdr87Eg-TsaCHHIPRSlNuPRmBx66Y3pR5c6fAYTOX-AJyTh7hq_ZkzJtqTl5I5Y0FBlxjFtY1rTy_09Fa6d3i-ZDQ5vIjQIS1k49iHC/s320/fdic.png)
President Obama proposed increasing the FDIC's borrowing capacity to $100 billion. Congress supports this move with legislation, only it adds a kicker that the FDIC can temporarily borrow up to $500 billion in an emergency.
How much FDIC borrowing will turn into government financing of distressed bank takeovers? Will any private equity underwriters benefit from FDIC borrowings?