FDIC Report: ‘We Were Broke And Getting Broker’

See also: FDIC Reports 27 Percent Jump In Problem US Banks


Amazing…

700 troubled banks is bad, and far worse than 552 last quarter.

But the $20.9 billion loss in the deposit fund, after losing $8.2 billion last quarter, is beyond bad and well into the psychotropic medication range.

Remember that the Deposit Insurance Fund went negative last quarter. Now it has lost another $20.9 billion.

What does the FDIC say?

The agency hopes to make up that loss through advance payments by banks of $45 billion in fees

There’s that “hope” word again.

Oh, once you’ve prepaid your fees, what happens if the losses continue?  Can’t collect the same fee more than once, right?

That’s what I thought.

“Each account insured to at least $250,000 through 12/31/2013 – so long as we can continue to borrow money from Treasury to pay you.

They leave that last part of the sentence out, of course.

Read moreFDIC Report: ‘We Were Broke And Getting Broker’

FDIC Reports 27 Percent Jump In Problem US Banks

WASHINGTON (Reuters) – The number of “problem” U.S. banks jumped 27 percent during the fourth quarter of 2009 to 702, the highest level since 1993 and a sign the industry’s recovery is still shaky, regulators reported on Tuesday.

The Federal Deposit Insurance Corp said the industry overall eked out a profit of $914 million for the quarter, benefiting from a healing economy, but said the improvement was concentrated in the largest banks.

FDIC Chairman Sheila Bair said the profit was a huge improvement over the $37.8 billion loss the industry reported in the fourth quarter of 2008. “It’s not that this was a strong quarter. It’s simply that everything was so bad a year ago,” Bair said in a statement.

Read moreFDIC Reports 27 Percent Jump In Problem US Banks

FDIC Seizes 4 More Banks; US Bank Failures In 2010 Rise To 20

The banks are bracing themselves for the coming commercial real estate meltdown:

US Banks Facing $1.4 Trillion Crisis Over Commercial Real Estate Loans

Expect more than 1000 banks to fail, when the real tsunami hits:

Bank CEO: 1000 Banks to Fail In Next Two Years

The problem is that the FDIC is broke:

FDIC insurance fund is now broke, closes quarter $8.2 billion in debt

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund

If the FDIC runs out of money, then Timmy Geithner will surely help!???:

Obama Signs Law Raising Public Debt Limit from $12.4 Trillion to $14.3 Trillion

Obama’s $3.8 Trillion Budget: Tax Rise of $1.9 Trillion for Richer Americans, Businesses

The US is totally broke.

What could possibly go wrong?

Rep. Ron Paul At CPAC 2010: ‘We Are On The Brink Of A Financial Cataclysmic Event.’


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WASHINGTON — Regulators shuttered four banks Friday, from Florida to California, as local banks continue to buckle across the country.

Twenty banks have toppled so far in 2010 and 185 have failed since January 2008, with regulators expecting to close dozens more by the end of this year. The Federal Deposit Insurance Corp. estimated the four failures Friday cost its deposit insurance fund more than $1 billion.

The largest bank to fail Friday was the 10-branch La Jolla Bank in California. Its $3.6 billion of assets made it the biggest bank to fail in 2010. The FDIC sold all of La Jolla’s deposits and virtually all of its assets to OneWest FSB, a thrift created last year after investors bought up pieces of the failed IndyMac Bank. The FDIC and OneWest agreed to share future losses on $3.3 billion of the La Jolla Bank’s deposits.

Read moreFDIC Seizes 4 More Banks; US Bank Failures In 2010 Rise To 20

Matt Taibbi: Wall Street’s Bailout Hustle

Goldman Sachs and other big banks aren’t just pocketing the trillions we gave them to rescue the economy – they’re re-creating the conditions for another crash

matt-taibbi-wall-street-bailout-hustle

On January 21st, Lloyd Blankfein left a peculiar voicemail message on the work phones of his employees at Goldman Sachs. Fast becoming America’s pre-eminent Marvel Comics supervillain, the CEO used the call to deploy his secret weapon: a pair of giant, nuclear-powered testicles. In his message, Blankfein addressed his plan to pay out gigantic year-end bonuses amid widespread controversy over Goldman’s role in precipitating the global financial crisis.

The bank had already set aside a tidy $16.2 billion for salaries and bonuses – meaning that Goldman employees were each set to take home an average of $498,246, a number roughly commensurate with what they received during the bubble years. Still, the troops were worried: There were rumors that Dr. Ballsachs, bowing to political pressure, might be forced to scale the number back. After all, the country was broke, 14.8 million Americans were stranded on the unemployment line, and Barack Obama and the Democrats were trying to recover the populist high ground after their bitch-whipping in Massachusetts by calling for a “bailout tax” on banks. Maybe this wasn’t the right time for Goldman to be throwing its annual Roman bonus orgy.

Not to worry, Blankfein reassured employees. “In a year that proved to have no shortage of story lines,” he said, “I believe very strongly that performance is the ultimate narrative.”

Translation: We made a shitload of money last year because we’re so amazing at our jobs, so fuck all those people who want us to reduce our bonuses.

Goldman wasn’t alone. The nation’s six largest banks – all committed to this balls-out, I drink your milkshake! strategy of flagrantly gorging themselves as America goes hungry – set aside a whopping $140 billion for executive compensation last year, a sum only slightly less than the $164 billion they paid themselves in the pre-crash year of 2007. In a gesture of self-sacrifice, Blankfein himself took a humiliatingly low bonus of $9 million, less than the 2009 pay of elephantine New York Knicks washout Eddy Curry. But in reality, not much had changed. “What is the state of our moral being when Lloyd Blankfein taking a $9 million bonus is viewed as this great act of contrition, when every penny of it was a direct transfer from the taxpayer?” asks Eliot Spitzer, who tried to hold Wall Street accountable during his own ill-fated stint as governor of New York.

Beyond a few such bleats of outrage, however, the huge payout was met, by and large, with a collective sigh of resignation. Because beneath America’s populist veneer, on a more subtle strata of the national psyche, there remains a strong temptation to not really give a shit. The rich, after all, have always made way too much money; what’s the difference if some fat cat in New York pockets $20 million instead of $10 million?

The only reason such apathy exists, however, is because there’s still a widespread misunderstanding of how exactly Wall Street “earns” its money, with emphasis on the quotation marks around “earns.” The question everyone should be asking, as one bailout recipient after another posts massive profits – Goldman reported $13.4 billion in profits last year, after paying out that $16.2 billion in bonuses and compensation – is this: In an economy as horrible as ours, with every factory town between New York and Los Angeles looking like those hollowed-out ghost ships we see on History Channel documentaries like Shipwrecks of the Great Lakes, where in the hell did Wall Street’s eye-popping profits come from, exactly? Did Goldman go from bailout city to $13.4 billion in the black because, as Blankfein suggests, its “performance” was just that awesome? A year and a half after they were minutes away from bankruptcy, how are these assholes not only back on their feet again, but hauling in bonuses at the same rate they were during the bubble?

The answer to that question is basically twofold: They raped the taxpayer, and they raped their clients.

Read moreMatt Taibbi: Wall Street’s Bailout Hustle

Wall Street Is A High-On-Crack Driver That Just Smashed Into Your House

Compared to Wall Street the US government and the Fed nuked the economy, the dollar and any bright future that the people in the US might have had. The people will experience the fallout very soon.

The ‘Greatest Depression’.

Cynthia McKinney is spot-on :

Cynthia McKinney at Munich Germany NATO Peace Rally: ‘My Country Has Been Hijacked By A Criminal Cabal’


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(This guest post comes from Tavakoli Structured Finance)

If a high-on-crack driver crashed his speeding rental car into your house and killed your spouse, you would be outraged if law enforcers took bribes and gave the driver a pass on a blood test. If the judge then merely fined the killer and ordered you to pay it, you would appeal, wondering what happened to justice. If the government then handed the crack-driver keys to a bigger rental car and presented you with the rental bill, you would certainly protest.

How is it, then, that you have remained largely silent in the face of the same sort of behavior by Wall Street and Washington? Bonus-seeking bankers careened off the right path and ran Ponzi schemes that nearly ruined our economy. Bureaucrats and elected officials bailed them out without demanding consequences. Bankers are revving their engines again.

Bankers Get Bonuses, the USA Gets the Great Recession

Taxpayers are asked to believe that over-borrowing by U.S. consumers created a global financial crisis. This myth aids and abets Wall Street. The economy was nearly destroyed because banks borrowed massively, and they borrowed many multiples more than they could afford. Wall Street pumped the Fed’s cheap money through financial meth labs, and deceptive financial vehicles ran over securities laws at top speed.

More than 20% of mortgage loans–including originally sound loans–are underwater, meaning the borrower owes more than the home is worth. Official unemployment numbers hover at around 10%. If you include underemployment, it is around 18%. In depressed areas where the nation’s poorest–chiefly minorities–have been hurt the most, unemployment has soared past 30%. For this destitute group, unemployment combined with underemployment exceeds 50%.

As U.S. soldiers fought wars in Iraq and Afghanistan, Wall Street flattened Main Street. Our foreign wars drag on, while the U.S. battles a crippling recession at home.

Global Ponzi Scheme

Fraud by borrowers, fraud on borrowers, and speculation by people who thought home prices would rise forever have all tarnished mortgage lending. Yet this pales compared to the epidemic of predatory lending.

Predatory snipers committed financial murder as deliberately as British soldiers sold smallpox contaminated blankets to Native Americans. Honest homeowners were systematically targeted and actively misled into bad mortgage products. Loans were presented as gifts, but these Trojan horse loans hid destructive risk. “Disclosures” were acts of malice.

When Wall Street packaged these loans and sold deceptive “investments,” documents did not specifically disclose that credit ratings were misleading. If you know or should know a car’s gas tank will blow up, you cannot use a misleading third-party consumer report as an excuse. Yet bonus-seeking bankers used this sort of excuse to get through a few more highly-paid bonus cycles, before it all fell apart. Only the elite crowd of insiders prospered.*

This was the most massive Ponzi scheme in the history of the global capital markets. U.S. taxpayers became unwilling unsophisticated investors when we bailed out the financial system. We must hold Wall Street accountable for its fraud.

Read moreWall Street Is A High-On-Crack Driver That Just Smashed Into Your House

FDIC Seizes Six More Banks; US bank failure tally hits 15 for 2010

Yesterday’s actions cost the fund $1.86 billion, the FDIC said.

Source: BusinessWeek


Regulators shut down banks in 5 states

bank-failure

(WASHINGTON) –Regulators shut down a big bank in California on Friday, along with two banks in Georgia and one each in Florida, Minnesota and Washington. That brought to 15 the number of bank failures so far in 2010 atop the 140 shuttered last year in the punishing economic climate.

The failure of Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits, is expected to cost the federal deposit insurance fund $825.5 million.

The Federal Deposit Insurance Corp. took over the bank as well as the others: First National Bank of Georgia, based in Carrollton, Ga., with $832.6 million in assets and $757.9 million in deposits and Community Bank and Trust of Cornelia, Ga., with $1.2 billion in assets and $1.1 billion in deposits; Florida Community Bank of Immokalee, Fla., with $875.5 million in assets and $795.5 million in deposits; Marshall Bank of Hallock, Minn., with $59.9 million in assets and $54.7 million in deposits; and American Marine Bank of Bainbridge Island, Wash., with $373.2 million in assets and $308.5 million in deposits.

Read moreFDIC Seizes Six More Banks; US bank failure tally hits 15 for 2010

FDIC Seizes Five Banks; US bank failure tally hits 9 for 2010

And the FDIC is broke.


bank-failure

Regulators seized five banks in Florida, Missouri, New Mexico, Oregon and Washington, lifting the total number of failures this year to nine as financial institutions struggle with loan defaults and a weak economy.

Two of the five institutions had assets of more than $1 billion. The Florida bank, in Miami, was sold to an investment group that includes former North Fork Bancorp Chief Financial Officer Dan Healy. The deposits and assets of the New Mexico bank went to Texas billionaire Andrew Beal.

The Federal Deposit Insurance Corp. estimated the Friday closings will cost the agency’s cash-strapped deposit-insurance fund a total of $531.7 million.

Since 2008, regulators have shut down 174 banks, and the expectation is that failures will continue to accelerate in 2010 amid heightened regulatory scrutiny. FDIC Chair Sheila Bair has predicted that failures will “peak” this year and then “subside.”

Read moreFDIC Seizes Five Banks; US bank failure tally hits 9 for 2010

FDIC seizes Horizon Bank, first US bank failure of 2010

bank-failure

WASHINGTON, Jan 8 (Reuters) – U.S. regulators closed Horizon Bank (HRZB.O) of Bellingham, Washington, on Friday, kicking off what has been forecast as a peak year for small bank failures.

The Federal Deposit Insurance Corp said Horizon Bank had approximately $1.3 billion in total assets and $1.1 billion in total deposits as Sept. 30.

Friday’s bank failure is expected to cost the FDIC’s insurance fund a total of $539.1 million.

The 18 branches of Horizon Bank will reopen during their normal business hours beginning on Saturday as branches of Washington Federal Savings and Loan Association and deposits will continued to be insured by the FDIC.

Community banks are facing persistent pressure from deteriorating loans, many tied to commercial real estate projects that have collapsed or are in decline.

Regulators closed 140 banks last year, the highest level since 1992 when officials were still cleaning up from the savings and loan crisis. That compares with 25 in 2008 and only three in 2007.

Read moreFDIC seizes Horizon Bank, first US bank failure of 2010

FDIC Party: Seven US Banks Are Seized, Bank Failure Tally Reaches 140

Related articles:

FDIC insurance fund is now broke, closes quarter $8.2 billion in debt

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund

If the FDIC runs out of money, then Timmy will surely help:

US National Debt Tops Debt Limit

Let’s see what happens if 500 (or even 1000) banks will fail in 2010:

Bank CEO: 1000 Banks to Fail In Next Two Years


bank-failure1

Dec. 19 (Bloomberg) — Seven U.S. banks were seized by regulators, bringing this year’s total of failed lenders to 140 as financial companies are tested by the recession and the Federal Deposit Insurance Corp. anticipates more shutdowns.

Banks with $14.4 billion in total assets were closed yesterday in six U.S. states, the FDIC said in statements on its Web site. The agency is overseeing the dissolution of banks at the fastest pace in 17 years.

Two of the closures were in California. The assets and deposits of Federal Bank of California in Santa Monica were bought by closely held OneWest Bank, which acquired IndyMac Federal Bank this year. Imperial Capital Bank was bought by City National Corp., the Beverly Hills-based parent of City National Bank, which expanded in Southern California with the purchase.

“Imperial Capital Bank is a very good fit for City National, given that eight of its nine locations are in communities we serve,” City National Chief Executive Officer Russell Goldsmith said in a statement. “We’re pleased to contribute to the increased stability of the banking system.”

Federal Bank was the biggest lender seized yesterday, with $6.1 billion of assets and $4.5 billion in deposits, according to the FDIC. Based in La Jolla, Imperial Capital had assets of $4 billion and $2.8 billion in deposits.

Earlier this week, the FDIC boosted its 2010 budget by 56 percent to $4 billion to manage further shutdowns. The total budget will increase from $2.6 billion and the set-aside for bank failures doubles to $2.5 billion over this year, according to a proposal approved by the FDIC board. The agency staff will increase to 8,653 next year from 7,010 this year.

‘Larger Number’ of Failures

The budget “will ensure that we are prepared to handle an ever-larger number of bank failures next year, if that becomes necessary,” FDIC Chairman Sheila Bair said in a statement. Yesterday’s bank closings will cost the agency about $1.8 billion, according to the FDIC statements.

Read moreFDIC Party: Seven US Banks Are Seized, Bank Failure Tally Reaches 140

FDIC seizes 3 more banks, US bank failure tally reaches 133

Related articles:
FDIC insurance fund is now broke, closes quarter $8.2 billion in debt
FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund


Regulators close regional banks in Florida, Kansas and Arizona, at a cost of $252.1 million to the FDIC.

money-banks

NEW YORK (CNNMoney.com) — Regulators closed regional banks in three U.S. states Friday, bringing the total number of failed banks this year to 133, the Federal Deposit Insurance Corp. said.

Customers of the failed banks are protected. The FDIC, which has insured bank deposits since the Great Depression, currently covers accounts up to $250,000.

Read moreFDIC seizes 3 more banks, US bank failure tally reaches 133

Obama’s Big Sellout (Rolling Stone Magazine)

The president has packed his economic team with Wall Street insiders intent on turning the bailout into an all-out giveaway

elite-puppet-president-obama

Barack Obama ran for president as a man of the people, standing up to Wall Street as the global economy melted down in that fateful fall of 2008. He pushed a tax plan to soak the rich, ripped NAFTA for hurting the middle class and tore into John McCain for supporting a bankruptcy bill that sided with wealthy bankers “at the expense of hardworking Americans.” Obama may not have run to the left of Samuel Gompers or Cesar Chavez, but it’s not like you saw him on the campaign trail flanked by bankers from Citigroup and Goldman Sachs. What inspired supporters who pushed him to his historic win was the sense that a genuine outsider was finally breaking into an exclusive club, that walls were being torn down, that things were, for lack of a better or more specific term, changing.

Then he got elected.

What’s taken place in the year since Obama won the presidency has turned out to be one of the most dramatic political about-faces in our history. Elected in the midst of a crushing economic crisis brought on by a decade of orgiastic deregulation and unchecked greed, Obama had a clear mandate to rein in Wall Street and remake the entire structure of the American economy. What he did instead was ship even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place. This new team of bubble-fattened ex-bankers and laissez-faire intellectuals then proceeded to sell us all out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside.

How could Obama let this happen? Is he just a rookie in the political big leagues, hoodwinked by Beltway old-timers? Or is the vacillating, ineffectual servant of banking interests we’ve been seeing on TV this fall who Obama really is?

Whatever the president’s real motives are, the extensive series of loophole-rich financial “reforms” that the Democrats are currently pushing may ultimately do more harm than good. In fact, some parts of the new reforms border on insanity, threatening to vastly amplify Wall Street’s political power by institutionalizing the taxpayer’s role as a welfare provider for the financial-services industry. At one point in the debate, Obama’s top economic advisers demanded the power to award future bailouts without even going to Congress for approval — and without providing taxpayers a single dime in equity on the deals.

How did we get here? It started just moments after the election — and almost nobody noticed.

‘Just look at the timeline of the Citigroup deal,” says one leading Democratic consultant. “Just look at it. It’s fucking amazing. Amazing! And nobody said a thing about it.”

Barack Obama was still just the president-elect when it happened, but the revolting and inexcusable $306 billion bailout that Citigroup received was the first major act of his presidency. In order to grasp the full horror of what took place, however, one needs to go back a few weeks before the actual bailout — to November 5th, 2008, the day after Obama’s election.

Read moreObama’s Big Sellout (Rolling Stone Magazine)

6 more US banks failed on Friday, cost for the FDIC $2.384 billion, tally reaches 130

Regulators shutter Cleveland-based AmTrust Bank, and five other banks.


bank-failure

NEW YORK (CNNMoney.com) — The nation’s tally of 2009 bank casualties hit 130 Friday when regulators shuttered a large Ohio bank, an Illinois bank, a Virginia bank and three small Georgia banks.

The largest bank to fail was AmTrust Bank in Cleveland.

Regulators also closed Benchmark Bank in Aurora, Ill., and Greater Atlantic Bank in Reston, Va.

The Buckhead Community Bank in Atlanta, Ga., First Security National Bank in Norcross, Ga., The Tattnall Bank in Reidsville, Ga., were also closed.

Read more6 more US banks failed on Friday, cost for the FDIC $2.384 billion, tally reaches 130

FDIC insurance fund is now broke, closes quarter $8.2 billion in debt

piggybank

As the number of problem U.S. banks swells to the hundreds, the Federal Deposit Insurance Corporation is increasingly hard-pressed to fill in the gaps where institutions have put depositor’s funds at risk.

Unfortunately, a dire prediction made by government officials in early 2009 has come true: the FDIC’s deposit insurance fund is now broke, according to published reports.

“The deposit insurance fund dropped by $18.6 billion during the third quarter of 2009 to negative $8.2 billion, as the Federal Deposit Insurance Corp. set aside $21.7 billion in provisions for additional bank failures,” The Wall Street Journal reported. “This is the second time in the agency’s history that the balance has fallen into negative territory.”

In March the FDIC took steps to stave off the possibility that its insurance fund would run dry, instituting new fees on banks, forcing them to pay to protect consumers.

The head of the Federal Deposit Insurance Corporation, Sheila Bair, wrote to bank leaders declaring that “without these assessments, the deposit insurance fund could become insolvent this year.”

According to the FDIC’s most recent quarterly report, there were 552 “problem” banking institutions in the U.S., the most since the end of 1993.

“In its state of the industry report, the F.D.I.C. reported that banks posted a $2.8 billion gain in the third quarter, after a $4.3 billion loss in the previous period,” The New York Times reported. “The number of bad loans of nearly every stripe – credit cards, mortgages, small business and commercial real estate – continue to grow, albeit at a slower pace.”

BizJournals added: “Fifty institutions failed during the third quarter, bringing the total number of failures in the first nine months of 2009 to 95. As of Nov. 21, 124 banks have failed nationwide.”

Read moreFDIC insurance fund is now broke, closes quarter $8.2 billion in debt

FDIC Shuts Down 5 More Banks, Tally Hits 120 As United Commercial Bank Fails

Related article: Big California bank fails, has China branches (Reuters)


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WASHINGTON — U.S. regulators closed five more banks on Friday, reaching 120 for the year, as souring loans and the lingering effects of last year’s financial crisis continued to weigh on the nation’s financial institutions.

San Francisco-based United Commercial Bank became the fifth and largest bank to be taken over by regulators on Friday evening, as annual failures hit levels not seen since the savings and loan crisis of the early 1990s. There were 25 bank failures in 2008, and three in 2007.

The Federal Deposit Insurance Corp. said in a release that East West Bank of Pasadena, Calif., would take over United Commercial’s roughly $7.5 billion in deposits, as well as $10.2 billion in assets. The deal includes all of United Commercial’s branches in the U.S., a branch in Hong Kong, and a subsidiary headquartered in Shanghai, China.

The agency said that it would continue to protect the bank’s domestic deposits, while Hong Kong deposits would be covered by the Hong Kong Deposit Protection Scheme. U.S. regulators are also working with their counterparts in China on the bank’s operations in that country, the agency said.

The failure is estimated to cost the FDIC’s deposit insurance fund an estimated $1.4 billion. That’s represents a significant hit for the fund, which has come under increasing pressure this year as failure costs have topped the agency’s initial loss projections. Federal regulators are currently considering a proposal that would have U.S. banks pay three years worth of premiums in advance in order to raise $45 billion to provide more liquidity to the fund.

Read moreFDIC Shuts Down 5 More Banks, Tally Hits 120 As United Commercial Bank Fails

US: 9 more banks fail; $2.5 billion hit for FDIC fund

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund.


money-banks

SAN FRANCISCO (MarketWatch) — Nine more U.S. banks, all owned by the same Illinois holding company, were closed Friday by regulators, and the Federal Deposit Insurance Corp. said U.S. Bank of Minneapolis would assume their deposits.

The closings brought the total to 115 in 2009 — the first year since 1992 that more than 100 banks have gone under.

The banks as of Sept. 30 had combined assets of $19.4 billion and deposits of $15.4 billion, the FDIC said.

The deposit insurance fund will take an estimated $2.5 billion hit, the FDIC said.

All nine banks were subsidiaries of FBOP Corp., a holding company based in the Chicago suburb of Oak Park, Ill., according to the FDIC.

Read moreUS: 9 more banks fail; $2.5 billion hit for FDIC fund

US Bank Failures Stack Up: Now 106 For 2009

Banks in Florida, Georgia, Illinois, Minnesota and Wisconsin, were shuttered, costing the FDIC an estimated $356.6 million.

money-banks

NEW YORK (CNNMoney.com) — The tally of bank failures easily broke past the No. 100 milestone on Friday night, with regulators announcing the year’s 106th closure.

That’s more than four times the number that were closed in 2008, and the highest total since 1992, when 181 banks failed.

Earlier on Friday evening the dubious honor of the 100th failure went to Partners Bank, of Naples, Fla., which had $65.5 million in assets, according to the Federal Deposit Insurance Corp.

The 101st failure was American United Bank, of Lawrenceville, Ga., which had $111 million in assets.

The 102nd failure was another Naples, Fla., institution: Hillcrest Bank Florida, which had $83 million in assets.

The 103rd closure was Bradenton, Fla.-based Flagship National Bank, with $190 million in assets.

The 104th was Bank of Elmwood, based in Racine, Wis., which had $327.4 million in assets.

The 105th failure was Riverview Community Bank of Otsego, Minn., with $108 million in assets.

The 106th failure was First Dupage Bank in Westmont, Ill., which had $279 million in assets.

Read moreUS Bank Failures Stack Up: Now 106 For 2009

Fall Of The Republic – The Presidency Of Barack H. Obama (The Full Movie HQ)

“When the people find they can vote themselves money, that will herald the end of the republic.”
– Benjamin Franklin


Added: 22. October 2009

Fall Of The Republic documents how an offshore corporate cartel is bankrupting the US economy by design. Leaders are now declaring that world government has arrived and that the dollar will be replaced by a new global currency.

President Obama has brazenly violated Article 1 Section 9 of the US Constitution by seating himself at the head of United Nations’ Security Council, thus becoming the first US president to chair the world body.

A scientific dictatorship is in its final stages of completion, and laws protecting basic human rights are being abolished worldwide; an iron curtain of high-tech tyranny is now descending over the planet.

A worldwide regime controlled by an unelected corporate elite is implementing a planetary carbon tax system that will dominate all human activity and establish a system of neo-feudal slavery.

Read moreFall Of The Republic – The Presidency Of Barack H. Obama (The Full Movie HQ)

US bank failure tally hits 99 for 2009; FDIC fund in the red

money-banks

Related articles:
FDIC bank fund in the red until 2012 (CNN Money):
Last month, the agency painted an even more dire picture, estimating that the fund is currently in the red after taking into account future bank failures it anticipates will happen.
Bank CEO: 1000 Banks to Fail In Next Two Years (CNBC)
Meredith Whitney: There Will Be More Than 300 Bank Failures (Bloomberg)

But your money is absolutely safe and secure. Oh, wait a minute:
FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund.


fdic-logojpg

NEW YORK (AP) – Regulators shut down San Joaquin Bank in California on Friday, marking the 99th failure this year of a federally insured bank.

The Federal Deposit Insurance Corp. was appointed receiver of San Joaquin Bank, based in Bakersfield, Calif. It had $775 million in assets and $631 million in deposits as of Sept. 29.

The FDIC said the bank’s deposits will be assumed by Citizens Business Bank, based in Ontario, Calif. Its five branches will reopen Monday as branches of Citizens Business Bank.

San Joaquin Bank’s failure is expected to cost the FDIC’s insurance fund $103 million.

(The mantra:)
Depositors’ money is not in danger. The FDIC is backed by the government, and deposits are guaranteed up to $250,000 per account.

But the deposit insurance fund has fallen into the red. The FDIC board recently proposed to have U.S. banks prepay about $45 billion of their insurance premiums – three years’ worth.

Read moreUS bank failure tally hits 99 for 2009; FDIC fund in the red

Government Watchdog: Treasury and Federal Reserve Knew Bailed-Out Banks Were Not Healthy, Lying to Americans

If people trust the US government and the Federal Reserve, then they are doomed and they deserve it, because they haven’t done they research.

Why would you trust somebody that has been caught lying and stealing almost all of the time?

Why would you trust somebody that has brought down the value of the US dollar to 5 cents compared to 1913, when the Federal Reserve banksters took over?

Why would you trust somebody that has stolen essentially 95% of your money?

Why would you trust somebody that threatens with an economic meltdown if you would take a look into their books?


Senior Officials Had Financial Concerns About Nine Bank Instiutions Receiving TARP Funds

banksters-and-money
The chief watchdog for the government’s $700 billion bailout program says federal officials were trying to contain the worst financial crisis in decades last year with the Troubled Asset Relief Program, but they had concerns about the bank institutions’ financial health. (ABC News Photo Illustration)


The Treasury Department and the Federal Reserve lied to the American public last fall when they said that the first nine banks to receive government bailout funds were healthy, a government watchdog states in a new report released today.

Neil Barofsky, the special inspector general for the Troubled Asset Relief Program (SIGTARP), says that despite multiple statements on Oct. 14 of last year that these nine banks were healthy and only receiving government funds for the good of the country’s economy, federal officials knew otherwise.

“Contemporaneous reports and officials’ statements to SIGTARP during this audit indicate that there were concerns about the health of several of the nine institutions at that time and, as detailed in this report, that their overall selection was far more a result of the officials’ belief in their importance to a system that was viewed as being vulnerable to collapse than concerns about their individual health and viability,” Barofsky says.

Last October, the government was in the midst of trying to contain the worst financial crisis in decades. On Sept. 7, 2008, mortgage giants Fannie Mae and Freddie Mac were placed under conservatorship. On Sept. 15, the massive investment bank Lehman Brothers filed for bankruptcy. The next day, insurance giant AIG needed an $85 billion government loan to avoid collapse.

On Oct. 13, after Congress had passed the $700 billion financial bailout program earlier that month, Treasury provided capital injections for nine institutions that together held over $11 trillion in assets: Bank of America, Citigroup, Wells Fargo, JP Morgan Chase, Goldman Sachs, Morgan Stanley, Merrill Lynch, State Street and the Bank of New York Mellon. As of June 2008, these nine banks accounted for around 75 percent of all assets held by U.S. banks.

In announcing the initial $125 billion provided to these banks, former Treasury Secretary Hank Paulson on Oct. 14 said,These are healthy institutions, and they have taken this step for the good of the U.S. economy. As these healthy institutions increase their capital base, they will be able to increase their funding to U.S. consumers and businesses.”

That same day, the Treasury Department, the Federal Reserve and the FDIC also released a joint statement reiterating that “these healthy institutions are taking these steps to strengthen their own positions and to enhance the overall performance of the US economy.”

Read moreGovernment Watchdog: Treasury and Federal Reserve Knew Bailed-Out Banks Were Not Healthy, Lying to Americans

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund.

“Your money is safe!” Sure!

It is much safer to believe in Santa Claus.


FDIC Calls Banks to Prepay Assessment of $45 Billion.

fdic-logojpg

The FDIC has greatly underestimated the problems of our nation’s banking system.  Earlier in the week the FDIC proposed that banks put up $45 billion to protect bank depositors.  The average American must be amazed that a system backing $9 trillion in deposits is essentially broke.  Clearly the FDIC has the backing of the U.S. Treasury and Federal Reserve but there is some irony in having the FDIC tell banks to pay an early assessment to protect our money.  These banks are going to use bail out money to pay to protect taxpayer deposits!  The banking system is going to have some deep and profound issues as the $3 trillion in commercial real estate loans go bad in the next few years.

The problem is how the banking system is structured.  Take a look at how assets are distributed over the 8,204 banks:

fdic-banks

This is an incredible chart.  Total assets at FDIC insured banks amount to $13.3 trillion.  However, out of 8,204 banks 116 hold a stunning $10.28 trillion of these assets.  We can have the smaller banks fail and the asset base would hardly move.  Yet the issue of course is that the vast majority of big dollar problems are in the bigger banks.

The FDIC made the call for the prepayment this week because it is now officially in the red.  It is no surprise given that a system backing some $7.42 trillion in loans with what is now no reserve is doomed to fail.  It was destined to run out of money.  Yet it is naïve to think that only $45 billion is going to protect the system from the $3 trillion in commercial real estate loans that are held in many not too big to fail banks.  The end outcome is more trouble for banks and the taxpayer should gear up for a second round of bailouts.  If you doubt this the Federal Reserve has already discussed “Plan C” which was a backroom talk to preemptively bailout the commercial real estate industry.

Read moreFDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund.

FDIC Seizes Three More Banks, Bringing Failure Toll This Year to 98

Oct. 3 (Bloomberg) — Banks in Minnesota, Michigan and Colorado were shut by regulators, bringing this year’s toll of U.S. failures to 98 amid the worst financial crisis in more than seven decades.

Jennings State Bank of Spring Grove, Minnesota, and Warren Bank of Warren, Michigan, were closed by state regulators and the Federal Deposit Insurance Corp. was named receiver, the agency said yesterday in statements on its Web site. Southern Colorado National Bank of Pueblo was closed by the Office of the Comptroller of the Currency, the FDIC said.

“Deposits will continue to be insured by the FDIC,” the agency said. “There is no need for customers to change their banking relationship to retain their deposit insurance coverage.”

Regulators this year have closed the most banks since the savings-and-loan crisis of the early 1990s as lenders struggle with mounting losses on real-estate loans. U.S. job losses accelerated last month as the unemployment rate climbed to the highest level since 1983.

U.S. payrolls dropped by 263,000 in September, exceeding the median forecast in a Bloomberg survey, the Labor Department said yesterday. The jobless rate rose to 9.8 percent from 9.7 percent in August, while working hours matched a record low.

The FDIC deposit-insurance fund has been depleted by 120 bank failures in the past two years. The agency proposed asking banks to prepay three years of premiums to raise $45 billion. Yesterday’s failures cost the fund $293.3 million.

Read moreFDIC Seizes Three More Banks, Bringing Failure Toll This Year to 98

3 more down: 2009 Bank failure tally hits 92

Do you believe that the FDIC is able to protect every customer account up to $250,000?

Do you believe that your money is safe?

Banks on Sick List Top 400:
The FDIC’s insurance fund, which guards $6.2 trillion in U.S. deposits, fell to $10.4 billion at the quarter’s end, the lowest since mid-1993.
(AUGUST 28, 2009; Source: The Wall Street Journal)

Let me repeat this:
The FDIC guards $6.2 trillion in U.S. deposits with an insurance fund of $10.4 billion.

(Now the insurance fund is a lot less than $10.4 billion.)

Do you still believe that your money is safe?

Bank CEO: 1000 Banks to Fail In Next Two Years (CNBC)

Meredith Whitney: There Will Be More Than 300 Bank Failures (Bloomberg)

The only thing that will bring the system down immediately is a run on the banks and that is why the government/the Federal Reserve/the banksters play the confidence game on you.

The question is do you buy it?

This crisis is not over. It has just started. The worst is yet to come


Regulators close banks in Illinois, Minnesota and Washington at a cost of more than $2 billion to the FDIC.

NEW YORK (CNNMoney.com) — Regulators closed one large bank in Illinois on Friday in one of the biggest collapses of the year, while two other smaller failures pushed the 2009 total to 92.

Customers of the banks, however, are protected. The Federal Deposit Insurance Corp, which has insured bank deposits since the Great Depression, covers customer accounts up to $250,000.

In Illinois, 16 banks have failed so far this year, including Chicago-based Corus Bank, which was closed by the Office of the Comptroller of the Currency on Friday.

Read more3 more down: 2009 Bank failure tally hits 92

On the Edge with Max Keiser (09/04/09): The Banksters have free reign in America

Related articles:
Goldman Sachs Wrong on Economic Recovery, Macro Hedge Funds Say (Bloomberg):

Sept. 1 (Bloomberg) — Paul Tudor Jones, the billionaire hedge-fund manager who outperformed peers last year, is wagering that Goldman Sachs Group Inc. and Morgan Stanley got it wrong in declaring the start of an economic recovery.

“If we have a recovery at all, it isn’t sustainable,” Kevin Harrington, managing director at Clarium, said in an interview at the firm’s New York offices. “This is more likely a ski-jump recession, with short-term stimulus creating a bump that will ultimately lead to a more precipitous decline later.”

Head of China Investment Corporation: China & America are addressing bubbles by creating more bubbles (Reuters):
“It will not be too bad this year. Both China and America are addressing bubbles by creating more bubbles and we’re just taking advantage of that. So we can’t lose,” he said.

US: Biggest pension funds record steep losses of almost $100bn (Financial Times)

CalPERS Admits California “Pension Costs Unsustainable” (Global Economic Analysis)

CalPERS Invested More than $110 Million with Former ‘Car Czar’ CalPERS has invested more than $110 million with financier Steven Rattner, who resigned as President Barack Obama’s “car czar” amid an investigation into his dealings with New York’s public employee pension fund.


Guest is Mike Morgan of GoldmanSachs666.com

Mike Morgan: “Obama is the worst thing that could happen in the US.”

1 of 4:

Read moreOn the Edge with Max Keiser (09/04/09): The Banksters have free reign in America

Bank CEO: 1000 Banks to Fail In Next Two Years

Meredith Whitney: There Will Be More Than 300 Bank Failures


The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May.

“We’ve already lost 81 this year,” Kanas told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They’re smaller companies.” (See the accompanying video for the complete interview.)

Failed banks tend to be smaller and private, which exacerbates the problem for small business borrowers, said Kanas, who became CEO of BankUnited when his firm bought the bank and is the former chairman and CEO of North Fork bank.

“Government money has propped up the very large institutions as a result of the stimulus package,” he said. “There’s really very little lifeline available for the small institutions that are suffering.”

Read moreBank CEO: 1000 Banks to Fail In Next Two Years

Were the bailouts even constitutional?

The Crony Capitalist Bailout Nation

The starting point for all analysis of the ongoing bailout orgy that is currently being used in crony capitalist fashion to transfer wealth from our middle class to the Illuminati and their transnational conglomerates is whether these bailouts are authorized by the US Constitution. The answer is a resounding NO!!!

Nothing in the Constitution could ever be interpreted in any manner that would in any way allow the conversion of our quasi-capitalist republic into a Marxist-fascistic police state, which is the last thing our Founding Fathers had in mind.

How can our government simply hand over fiat money created out of thin air, which in itself totally violates the provisions in our Constitution dealing with the issuance of money, to whoever they deem to be too-big-to-fail?

The very idea of such targeted bailouts violates every precept upon which our nation was founded, and our Constitution in no way allows the bailout of any private person or business entity, especially where this creates special privileges to be given to a chosen few “anointed” entities at the expense of our citizens in general.

Regulation of interstate commerce does not mean doling out crony capitalist bailouts, which amount to nothing short of the implementation of feudalism under the Puppet Master oligarchs of our Shadow Government.

Read moreWere the bailouts even constitutional?