Will More Leverage Save The Economy?

Banking Links – February 23, 2010 Excess Leverage Always Has A Bad Ending – Atlantic Japan, Like Greece, Is Beyond Redemption – Bloomberg Loan Mods Nothing More Than An Expensive Delay – Guess Who Pays? -Calculated Risk Why Every Welfare State Will Follow Greece Into The Abyss – WP US Banking Lending Drops At Fastest […]

Financial Regulatory Reform Remains Illusive

Banking Links – February 22, 2010 Regulatory Financial Reform – All Talk, No Action – FS Without Borrowers Or Lenders, Deflation Is Inevitable – B Prechter Yield Starved Japanese Scoop Up US Treasury Debt – Bloomberg Fed Shows Its Hand With Discount Rate Hike – Econobrowser Low Borrowing Rates Meaningless Without Income – NYT Fundamental […]

FDIC Encourages New Lending As Loan Defaults Grow

Regulators Tell Banks To Lend – “Prudent Lending Will Not Be Criticized” The FDIC is encouraging banks under its supervision to increase lending to small businesses.   In a recent Financial Institution Letter, the FDIC highlights reasons for the decline in lending to small businesses as well as the rationale for banks to lend more aggressively. […]

4 Banks Collapse Bringing 2010 Total To 20, OneWest Makes Billions On Failed Bank Purchases

Banking Failures in Texas, California, Illinois and Florida Bring 2010 Total To 20 Regulators continued their ritual of Friday night bank closings, shuttering 4 more banks across the country.   The four failed banks had total assets of $4.2 billion and total deposits of $3.4 billion.  The cost to the FDIC Deposit Insurance Fund (DIF) […]

Asset Wealth Illusions Fade As Debt Defaults Continue

Banking Links – February 21, 2010 Plunging Commercial Real Estate Values Not Reflected On Banks Balance Sheets– WP Does Foreclosure Assistance For The Long Term Unemployed Make Sense? – Bloomberg Discount Rate Hike Meaningless To Savers As Rates Stay Low – Bloomberg Insurers Of Municipal Debt May Face Huge Claims – Bloomberg Pros Ponder Merit […]

Regulators Cannot Stop Foolish Lending Decisions

Banking Links – February 19, 2010 Frightened Banks Hoard Cash – The Economist Second Mortgage Writedowns Next Big Problem For Banks – NMN “Council of Regulators” To Protect Against Systemic Financial Risks – Yahoo News Debts That Cannot Be Repaid Will Not Be Repaid – Munis At Risk – WSJ Fed Hikes Discount Rate – […]

Indebted Governments See Central Banks As Final “Funding Option”

Banking Links – February 18, 2010 Is Your Bank On The “Do Not Trust” List? – Yahoo Finance With Fiscal Policy Options Exhausted Japan Looks To Central Bank For Salvation – Bloomberg Banks Take Blame For Collapse of Greece – FT With Economy In “Recovery” Question Of How To Shrink Fed Balance Sheet Debated – […]

US Treasury Needs New Buyers At Debt Auctions

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 […]

Taxpayers – Last Option To Bail Out Governments

Banking Links – February 16, 2010 Will US Housing Market Collapse As Government Winds Down Aid? – NYT Paulson Attacks Obama’s Financial Regulation Plans -Says Big Banks Essential To Financial Recovery -Times OnLine Europe At The Crossroads –  Greece Rescue Would Open The Floodgates – FT Forgiving Mortgage Debt Makes Payments Easier But At Whose […]

The Return Of Risk – A World Of Bankrupt Governments

Banking Links – February 15, 2010 China Follows Same Script Leading to Japan and U.S. Real Estate Crash – LAT Banking Industry A Mere Sideshow Compared to Sovereign Debt Crisis – Trader Mark How Wall Street Helped Greece To Borrow Beyond Its Means – Debt That Isn’t Debt – NYT Lender With the Biggest Exposure […]