>I don't know that "bailout" is quite an accurate description of what is happening. AFAIK it isn't as if the money was/is lost; it is more of a timing issue that is being bridged.
Bridging that timing issue will cost a few billion dollars in real cash, and other banks are being fined to make up the difference.
I should've realized as I wrote that that there is a real cost (time == money).
Do you know whether the other banks are being compelled? Or are they doing it willingly to shoulder their own kind?
This is basically how the 250k FDIC money is covered as well. All banks have to pay insurance fees to the FDIC, and when one goes belly up, the Federal Deposit Insurance Corporation pays out. The only difference is the 250k is prepaid
Bridging that timing issue will cost a few billion dollars in real cash, and other banks are being fined to make up the difference.