More regulation that does not work: The FDIC engages in accounting denial

Joe Weisenthal reports:

How will the FDIC replenish its coffers without Sheila Bair suffering the indignity of groveling in front of Tim Geithner? Clever accounting.

The plan is for the FDIC to require banks to pre-pay three years of assessments. As with everything else in the economy (cash for clunkers, the $8,000 homebuyer tax credit), the idea is to pull it forward.

The FDIC gets the cash now, the banks take a hit -- but one that they can expense over three years, as Karl Dnninger points out -- and voila, free money.

If a corporation engaged in such accounting shenanigans, someone would go to jail. Fortunately, this is the government!

After a certain point regulation makes us less safe, not more.