Who suffers primarily when the federal government has to bail out a financial intermediary through the deposit insurance system?

Question

Quizplus · Accepted Answer

When the federal government has to bail out a financial intermediary through the deposit insurance system, the taxpayers suffer primarily. This is because the federal government uses taxpayers' money to bail out the financial intermediary. Bank officers and shareholders may also suffer, but the primary burden falls on taxpayers. The U.S. Treasury is a part of the federal government, so it is not a distinct entity that suffers from the bailout.

Who Suffers Primarily When the Federal Government Has to Bail