Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., and Hank Paulson, secretary of the Treasury, didn't want to publicly acknowledge that the FDIC may not have enough money to make account holders whole if more banks fail. Now that we know it, The Wall Street Journal writes in this editorial, Bair and Paulson need to take action to reassure depositors that their money is safe. They also need to restructure the way the FDIC is funded.

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