Banking Links – February 17, 2010 “Fool Me Once Shame On You” – US Asks Foreign Governments To Buy Mortgage Backed Securities – Again – WP China’s Threat To Diversify Away From US Debt Becomes Reality – Bloomberg Fed’s “Exit Strategy” A Mirage – Financial Sense Goldman Sachs Sandbags Bond Investors On Sale Of Invisible […]
Are Banks Piling Into The Next Asset Bubble?
February 13, 2010 By Leave a Comment
Are Rising Interest Rates The Next Black Hole For Banks? Banks seem to have perfected the technique of over investing into the wrong asset class at the wrong time. As banks dramatically reduce lending while trying to recover from bad investments in mortgages and commercial real estate, are they now repeating their history of poor […]
Banking Failure In Minnesota Brings 2010 Total Closings To 16
February 6, 2010 By Leave a Comment
One Tiny Bank Fails in Minnesota – Total Failures Reach 16 In 2010 Regulators closed one bank today in Minnesota. The failed bank had total assets of $18.2 million and total deposits of $16.3 million. The cost to the FDIC Deposit Insurance Fund for the closing of this tiny failed bank is estimated at […]
6 Banking Failures Highlight Horrendous Loan Portfolios
January 30, 2010 By Leave a Comment
Six More Banking Failures Bring Year’s Total To 15 Regulators closed six banks today in Florida, Minnesota, California, Washington and two in Georgia. The six failed banks had total assets of $5.5 billion and total deposits of $4.9 billion. The total cost to the FDIC Deposit Insurance Fund for the six failed banks is estimated […]
FDIC Bair Slaps Down Bernanke – Says Low Interest Rates Incited Financial Crisis
January 19, 2010 By Leave a Comment
Financial Meltdown Fueled By Misguided Fed Policies In an appearance before the Financial Crisis Inquiry Commission, FDIC Chairman Bair testified on behalf of the FDIC on the causes of the worst financial crisis since the Great Depression. Since the financial meltdown of 2008, many financial analysts and government officials have given eloquent after the fact […]
FDIC Sells Failed Bank Loans At Steep Discount
January 9, 2010 By Leave a Comment
Private Investors Make Very Leveraged Bet On Asset Value Recovery The FDIC currently holds approximately $30 billion in failed bank assets from banks that have failed in the past 18 months. The assets held by the FDIC were of such dubious quality that the FDIC was unable to entice acquiring banks to purchase them, despite […]
Buyers For Failed Banks Hard To Find As FDIC Loses $1.8 Billion On 7 Bank Closings
December 19, 2009 By 1 Comment
7 Banking Institutions Closed On December 18, 2009 – FDIC Forced To Retain $1.9 Billion In Failed Bank Assets – Depositors Lose $3.2 Million As the number of banking failures increase, the FDIC appears to be encountering increasing difficulty in finding buyers for failed banks, despite agreeing to cover a large percentage of potential losses […]