The depletion of funds from the Federal Deposit Insurance Corporation’s deposit insurance fund has left the FDIC with few options, and they consequently decided to rebuild the fund by having banks across the nation pay insurance premiums for the next three years. Those gigantic premiums will be due at the end of December.
With over 500 [...]
All Posts Tagged With: "Sheila Bair"
FDIC’s Need For Capital Putting Pressure on Community Banks
FDIC Postpones Capital Requirements for Wells Fargo (NYSE:WFC), Citigroup Inc. (NYSE:C), Bank of America Corp. (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM)
Blaming former rules which allowed banks to effectively keep assets and liabilities off of their books and look stronger than they actually were, the Financial Accounting Standards Board changed that to where billions of assets and liabilities would now be forced to be listed on the books of banks like Wells Fargo (NYSE:WFC), Citigroup Inc. [...]
December 16th, 2009 | Gary | Comments | Continued
FDIC Chairman Sheila Bair Wants to Create Fund Forcing Banks to Contribute: Would Protect Against Big-bank Failures She Says
The U.S. government and its representative workers like FDIC chairman Sheila Bair, still don’t get why they should leave the market alone and let it work out its own problems and challenges. In Bair’s case, the latest potential interference is to force banks (and other secured creditors) to create a fund in order to protect [...]
December 9th, 2009 | Gary | Comments | Continued
Deposit Insurance Fund in Red by $8.2 Billion
As of the end of the third quarter, the Deposit Insurance Fund, the fund that backs up the guarantee that deposits in bank are secure up to $250,000, has dropped into the red to the tune of $8.2 billion.
This is no surprise, as the numbers have been suggesting this for months, but the FDIC has [...]
Battle Over Who Will Supervise American Banking System Heating Up
In what seems to be a political move to build up his political capital after being perceived as too friendly with the major banks, Senate Banking Committee Chairman Christopher Dodd (D., Conn.), has been preparing legislation which would dramatically change how the banking system in the U.S. would be supervised.
But opposition has already been mounting [...]
Editorial: Former Major Federal Banking Regulator Prof. Bill Black Says Treasury Secretary Timothy Geithner Incompetent in CIT Group (NYSE: CIT) Bailout Deal – Government Also in Full Cover-up Mode
Taxpayers are out of $2.3 billion because of the incompetent and outrageous deal Treasury Secretary Timothy Geithner made with CIT Group (NYSE: CIT) for receiving its bailout funds, according to William Black, professor at the University of Missouri-Kansas City School of Law, and former leading federal banking regulator.
Black stated in an interview: “We put ourselves [...]
Next Bank Failure will be No. 100 this Year – FDIC Will Operate in Red through 2012 at Least
The Federal Deposit Insurance Corp. and the government have been dreading the eventual failure of bank No. 100 this year, as the unwanted milestone is a negative psychological barrier which reminds the American people that the recession isn’t close to being over, no matter what the mainstream media lapdogs assert and parrot.
As far as handling [...]
Three More Banks Fail – Bringing Bank Failures to 98 So Far This Year
Three more banks were seized by banking regulators, bringing the number to 98 so far this year. Banks in Minnesota, Michigan and Colorado were the latest casualties.
In Minnesota, Jennings State Bank, a family-owned bank in Spring Grove, Minnesots went under, and had assets worth $56.3 million and deposits of $52.4 million as of July 31. [...]
The FDIC is Out of Money – Now What?
Now that the FDIC has effectively admitted they’ve run out of money in the Deposit Insurance Fund, what does that mean to for the banking system in the U.S., and the consumers and businesses using them?
First we have to understand that the banking system, the FDIC and the Treasury Department are essentially insolvent. If Japan [...]
Editorial: Economic Insanity – FDIC May Borrow From Healthy Banks to Prop Up More Zombie Banks
The news concerning banking regulators in the U.S., along with some of the bankers and their lobbyists, isn’t good, as now the idea is being thrown around by the FDIC to tap the healthy banks in the industry to shore up the Deposit Insurance Fund in order to protect depositors.
There are a couple of dynamics [...]
FDIC’s Proposed Private Equity Restrictions Hindering Bank Sales
As usual, when the government steps in to the private market they screw things up, and in the case of regulations proposed by the Federal Deposit Insurance Corp., they would essentially stop all interest of private equity firms in buying failed banks, cutting off a major source of capital.
The idea of the banking and other [...]
Yeah he can really say that if the government is waiting for the release of the positive result which will ...
I've only seen blog mentality reporting from this site, and don't take much merit in anything it says. 
This dog of a stock is finally moving in the right direction, and then "Citibank's team of equity strategists" downgrade ...