The Treasury Department's Authority to Expand FDIC Insurance

There are 18 trillion in total deposits, all of which will have to be insured and just 125 billion in the FDIC's deposit insurance fund. The Exchange Stabilization Fund pot of money is used to buy or sell currencies and provide financing to foreign governments. Any mechanism using the exchange stabilization fund as a bailout mechanism uses the cash for the fund as a first loss equity trench - lots of leverage.