Posted on 10/19/2009 10:03:09 AM PDT by FromLori
Gee, who saw this one?
Anyway, the point stands. The FDIC is clearly out of money, and this is nothing more than yet another legalized accounting fraud game, where they'll get "the money" now but allow the banks to "recognize" that "charge" over time.
And now we find that this is not a short-term issue either:
NEW YORK (CNNMoney.com) -- The government insurance fund designed to protect consumer bank deposits will likely stay in the red through 2012, Federal Deposit Insurance Corp. chief Sheila Bair said Wednesday.
I know I have brought this up repeatedly, but these sorts of losses simply should never happen. In fact, if the law is followed with regards to the FDIC, they can't happen.
What this deficiency shows is that the law has not been followed. It has instead been wantonly and recklessly ignored, as I have repeatedly pointed out:
Well now Doddering Dodd and "I've never been frank" Frank are asking for the impossible:
Today, Senate Banking Committee Chairman Chris Dodd and House Financial Services Committee Chairman Barney Frank asked the heads of U.S. banking regulators to look into whether their companies are carrying home-equity loans at “potentially inflated values,” which “may contribute to resistance on the part of servicers to negotiate the disposition of these liens.”
Most of these loans are in fact worth nothing!
Here's the understatement of the year from the same article:
“It is well understood that the four major banks would likely need an additional capital injection should they be forced to mark the second-lien mortgages on their balance sheets to a realistic value,” Greenwich Financial’s Frey said.
Oh, so you mean our wonderful Congress has in fact encouraged and put into policy and law accounting fraud?
That was easy.
The fact of the matter is that despite Bair continuing to claim "bank deposits are secure" this is an entirely speculative statement and is predicated on the United States being able to continue to borrow money from people who our pigmen and Congress have repeatedly and intentionally ripped off.
The fact of the matter is that almost none of the losses taken by the deposit fund should have occurred, and were the law being followed as written, would not have occurred.
The fact of the matter is that Bair should be under indictment, along with Dugan and the rest of the clown car brigade at OTS and OCC, as all three of these agencies are in fact interlocked by their directorates and all have wantonly and willfully ignored the mandates of the law with regard to not allowing banks and other financial institutions to develop negative equity positions.
The fact of the matter is that our so-called "oversight" instrumentalities, including Congress and Treasury, simply do not give a damn and none of them have lifted a finger to do anything about the wanton and willful disregard for the law. It doesn't help that these laws lack an "or else" that can bring criminal sanction for violations. Gee, was that intentional when these laws were written? Lie to the public about how "safe and sound" one's deposits are, while praying that the ponzi scheme continues to work out ok?
Note that nobody in the mainstream media bothers to bring up "Prompt Corrective Action" and demand from Bair and rest the answer to one simple question: "How does a bank get into a situation where it has a 20, 30, 40, 50% loss on it's asset base when Prompt Corrective Action and Tier Capital requirements are supposed to cause banks to be seized before ANY loss occurs?"
Don't expect the mainstream media to get off their knees any time soon, just as Congress and The Administration have refused to do so.
Isn’t it Barney Frank who recently suggested a new round of his special brand of housing loans? How does he stand on that now? My guess is that he will just go ahead with it like nothings wrong, as usual.
Well,if the FDIC were managed like a business, it would return to “guaranteeing” just the first $100,000 of bank deposits. That would amply protect the vast majority of Americans.
So it seems that, although the number of people who buy $250,000 hot-money CDs from troubled banks in order to earn high FDIC-guaranteed returns must be very “small”, their political contributions must be very “large”.
I’ve just noticed something about the blogosphere that is truly wonderful.
I’ve been a newspaper reporter for a very long time. During that period I’ve been assigned a regular beat, such as police, schools, etc.
But any beat writer is limited by what they can cover. Scratch that. They are forced to cover everything on their beat and that means they can’t cover anything in microscopic depth because there’s always something else that needs some ink.
If you cover schools, for example, you can do stories about state law, hiring of teachers, substitutes, etc. If a hot story appears about ... say ... the school lunch program, you can do a focus piece but soon you’re back to covering the school committee meetings and student artwork.
Not so with blogging, with Karl’s work here as a great example. While Karl does indeed cover a broad swath of the business world, he can focus on banking and remain there, immovable. If anything moves, he’s on it.
That may be an unrecognized strength of the blogosphere. The big boys in the media lambaste bloggers as being unaccountable to the wider world of journalism, which is true after a fashion.
But there are enough bloggers so that one may dedicate an entire weekly or even a daily column to the affairs and actions of Assistant Superintendent of Schools Rufus T. Foghorn and nothing else. And that is rather unique in the world of journalism.
I never thought of it like that but yes I know I find a lot of very interesting stories that the bloggers weave together I suppose because they can do that.
blogsphere: no organizational weight on the quality of the product. Also a blogger can cover local school problems and does not have to be politically correct in describing what is going on, who the players are and what consequences are being observed where.
You always have the risk of getting a bleeping lying idiot “reporting” but if follow those with a good track record, you can learn more from reading blogd than all the newspapers put together. Reading newspapers nowadays is the process of reading AP reporting over and over again.
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