Bank of America announced new help from the government today.

B of A received $20 billion in exchange for preferred shares, and Uncle Sam will backstop losses on some toxic assets above $10 billion. Even with this help, B of A's leadership is not optimistic.

The government (or, we the taxpayers) has taken a huge role in propping up the banks. Whether you agree with the reasons or not, the government has an increasing ownership interest - and therefore leverage - in the banks. Today's New York Times discusses a hint of bank nationalization.

Without rescue funds, banks might fail quickly and clear the way for healthy banks to move forward. However, that process would be painful to say the least.

What do you think about government assistance to the banks? How should we proceed? Tell us about it in the comments.

Further reading:

• Mortgage Crisis Causes
• What Happens in a Bank Failure?
• Federal Intervention in the Banking Crisis

What are the consequences of writing bad checks?

It's easier for a lot of people to write bad checks as job losses mount and the economy falters. You may have never written a bad check in your life, and you may not know what the consequences are. It's a good idea to find out so you don't learn the hard way.

Bad checks can cost you a lot of money, cause you to lose checkwriting privileges, land you in jail, and even affect your credit. Learn the dangers of writing bad checks, and find ways to avoid doing so.

Some of the best ways to avoid the dangers are to balance your checking account, and to use some sort of overdraft protection plan.

Further reading:

• 8 Reasons to Stop Writing Checks
• How to Balance Checking Accounts

The FDIC insurance limit was temporarily raised to $250,000 per depositor per bank in 2008. Today lawmakers are deciding if the increased limit should become permanent.

The temporary increase was a response to panic in the face of large bank failures. Some big names went under, and nobody knew who would fail next. Rumors (however accurate they might have been) were enough to send uninsured depositors running, and banks teetering on the edge got kicked over the edge due to bank runs. The increased limits helped mitigate the problem.

Now the House Financial Services Committee wants to beef up the FDIC insurance program for good. They hope to keep the $250,000 limit in place, and they want to expand the FDIC's ability to use funds from the US Treasury when needed. [via Bankdeals]

Further reading:

• How FDIC Insurance Works
• What is a Bank Run?

"Toxic waste" is back on the menu.

When the $700 bailout first passed, the idea was to purchase troubled assets from banks to help them gain solid footing. With those pesky hard-to-value assets off the books, the banks would be stronger.

However, lawmakers took a different route and injected cash into the banks by taking equity stakes. Was it enough to help? It seems like the answer is no. Even economic stimulus won't do the trick, according to Fed Chairman Ben Bernanke.

Bernanke proposes that the government buy or guarantee toxic waste, perhaps by setting up 'bad banks' as waste dumps. The bad banks would trade toxic waste for an equity interest in the banks that unload bad assets.

Further reading:

• Mortgage Crisis Causes
• Push to Buy Toxic Debt Gets New Life