Archive for August, 2009
The Financial Insanity of Government, Banking, and Moral Hazard
While the mainstream press falls all over itself to continue the mantra of the banks and other huge businesses having to been bailed out by the government, the reality is we’ve been placed in a much worse position now than before the crisis, in what is called moral hazard. Moral hazard, in the case of [...]
NY Federal Reserve President Says US Can Avoid Coming Inflation
Bank president of the New York Federal Reserve, William Dudley, said that the Federal Reserve has the tools it needs to prevent inflation from accelerating and doesn’t need to begin shrinking its balance sheet. The central bank has doubled the size of the assets that it has during the last year to more than $2 [...]
US Government Collects $4 Billion in Profit from TARP Participants
The United States Federal Government has collected profits of about $4 billion from eight of the nation’s largest banks that have repaid fully their loans from the Troubled Asset Relief Program (TARP) in addition to the repayment of the principal on their loans. The government has collected about $1.4 billion in profit from Goldman Sachs [...]
HSBC Direct Online Savings Account Review
Update 9/23/2009: HSBC Direct has dropped their interest rates to 1.35% APY With a lot of online savings accounts, you are dealing with banks that haven’t been around that long and don’t have a huge track record of success. HSBC Direct (NYSE:HBC) is definitely an exception to this trend. It has been operating since 1850 and [...]
Important Information for Taylor Bean Customers
If you had a payment held by Taylor, Bean & Whitaker Mortgage Corporation before the company went under and laid off most of its employees on August 5th, you’re going to have a bit of a difficult time making your payment. You cannot currently make a payment electronically, but there are some instructions to make [...]
Federal Reserve Audit May be Part of Financial Regulation Overhaul
Barney Frank, Chairman of the House Financial Service Committee, announced that a Federal Reserve audit will be part of the Congress’s regulatory overhaul on the financial services industry. In February of this year, Congressman Ron Paul introduced a piece of legislation which would provide the legislative framework for an audit of the Federal Reserve. Currently [...]
Will Business and Banking Bailouts Kill the American Economy?
While most in the mainstream media have been presenting Ben Bernanke as a hero who has saved the American economy, the reality is he may have done the greatest damage to it of any single man in American economic history. Usually he’s applauded for being an expert and taking taxpayer’s money and “injecting liquidity” into [...]
FDIC’s Actions Could Further Damage Banking Industry
I wanted to take a look at the recent communication between the FDIC and the banking community, where the FDIC asserted that “Recent experience demonstrates that newly insured institutions pose an elevated risk to the Deposit Insurance Fund, particularly during an economic downturn.” They added that the banks or financial institutions that had to have [...]
Obama’s Pay Czar Is A “Paid” Man
In early June President Barack Obama appointed Kenneth Fienberg to act as the pay czar for the Treasury Department and essentially policing Wall Street Compensation. Fienberg is probably most known for overseeing the government’s compensation funds for victims of September 11th. However, many American may not be aware that Feinberg is no stranger to receiving [...]
Banks Aren’t Lending, Consumers Aren’t Spending – What Recovery?
The assertion by analysts and economists that data from the quarter from July-September signals the end to the recession is so distorted and ridiculous, that you have to question either their integrity, sanity or ability to make that determination. This is so far from the truth that it can’t even be seriously entertained as a [...]
Ron Paul’s “End the Fed” Movement Gaining Steam
The growing interest in the book soon to be released by Ron Paul named “End the Fed” is unprecedented in monetary history, and reveals the extraordinary times we live in where a chance to change the monetary policy in the United States in a way that cold benefit all of us. What’s unique at this [...]
Analysts Predict FDIC Will Charge Additional Fees to Prop Up Insurance Fund
The Federal Deposit Insurance Corporation will likely need to charge the banking industry additional fees through 2013 to keep the agency’s reserve fund a float at a level mandated by law, according to analysts from Fox-Pitt Kelton Cochran Coronia Waller. The analysts predict that as much as $45 billion may need to be raised over [...]
Affinity Bank, Mainstreet Bank, Bradford Bank Fail—84 Total Failures in 2009.
Three additional banks failed on Friday, bringing the total number of failures this year to 84 as the banking industry continues to struggle with unexpected delinquencies and defaults on the loans on their books. Federal regulators stepped in and shut down Bradford Bancorp, Inc. in Baltimore, MD, more commonly known as Bradford Bank. Affinity Bank [...]
Ron Paul’s Bill Will Pass Says House Financial Services Chairman Barney Frank
Now that the public is slowly starting to understand the source of many of the booms and busts in history – the Federal Reserve – pressure has been mounting on House Financial Services chairman Barney Frank to bring the bill introduced by Texas Rep. Ron Paul out of his committee and allow a vote on [...]
Wells Fargo Home Mortgages Modifies 240,000 under Home Affordable Modification Program
Wells Fargo (NYSE:WFC) announced today that it has modified more than 240,000 mortgage loans from January through July, including 20,219 trial modifications under the federal government’s Home Affordable Modification Program, more commonly known as HAMP. The bank’s lending unit, known as Wells Fargo Home Mortgage, is headquartered in Des Moines, Iowa. The bank recently came [...]
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