Tuesday, February 23, 2010

FDIC on its knees 

There have been 20 bank failures so far in 2010, and 188 since the turning of the credit cycle in 2007. There remain more than 600 banks on the 'unofficial problem bank list,' and the list isn't getting shorter.

The FDIC announces its bank seizures on Friday evening, and thus stays out of the public consciousness, but whether people are aware of it or not the FDIC is eating a lot of bank losses.

It shouldn't be surprising that the FDIC is seeking more credit, and since this is America, no one should be surprised at how it is trying to get it. (Next thing you know they'll be sponsoring American Idol.)


By Blogger Cardinalpark, at Tue Feb 23, 08:39:00 AM:

The FDIC has also made it unattractive to provide new capital to the failed banks by limiting leverage and basically telling private equity capital to pound sound. Then they've insulted those of us who do that by calling us evil to boot.

So F'em.  

By Anonymous Anonymous, at Tue Feb 23, 09:47:00 AM:

Do not accept the bank failure data as factual. Remember, we are dealing with Chicago thugs here. Each transaction represents a real opportunity for a "friend" to make big bucks.
For example, last year, I had shares of PFF Bancorp, a retail bank in LA. It was failing and was purchased by a larger west coast bank at a price nicely above my purchase price. The Friday before the acquisition date, the feds closed the place and the deal fell through.
PFF found/had a white knight; there was no need to use public money to protect the PFF depositors. But, the FDIC did, costing me money but probably saving the purchasing bank a fortune. Why? Don't know but these are Chicago thugs!  

By Anonymous Anonymous, at Tue Feb 23, 11:17:00 AM:

CV--the FDIC finally admits it is officially insolvent.


There is no bottom in sight to this deflationary spiral. Stock market speculation driven by negative interest rates for banks is the only thing keeping this rickety ship afloat now. When that bubble bursts, as all bubbles do, this whole thing goes down.  

By Anonymous Anonymous, at Wed Feb 24, 12:17:00 AM:

It doesn't seem as bad as the S&L bailout, yet.

Is a non-FDIC bank legal? I have a bizarre notion about starting one.  

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