FDIC Considers Borrowing From Treasury As Banking Failures Increase
FDIC May Request Treasury Loan As Losses Grow The FDIC always takes pride in noting that it is self funding and covers failed bank losses by assessments on FDIC insured member financial institutions. Congress created the Federal [...]
Can The Unemployed Afford A Mortgage Payment?
Government Determined To Keep Unwilling Homeowners In Homes The FDIC announced a new initiative to reduce foreclosures on home mortgage loans held by failed banks that were acquired by another institution. This new FDIC program goes far [...]
The FDIC Deposit Insurance Fund (DIF) – A Risky Game Of Confidence
FDIC Rightly Worries About Public Confidence Due to the large number of bank failures during 2009 the FDIC Deposit Insurance Fund (DIF) has fallen to the lowest level since March 1993. Numerous headlines are screaming that the [...]
Feds To CIT – “Your Loan Application Has Been Denied”
CIT Solution Is Bankruptcy – Not Bailout A CIT spokesman said late today that “There is no appreciable likelihood of additional government support being provided over the near term”. Taxpayers had previously supplied a massive $2.3 billion [...]
FDIC Tells Banks California IOU’s Good As Gold
Bank Have Enough Bad Assets Yesterday, a group of major banks, including Bank of America, Citigroup, JP Morgan and Wells Fargo, said that they would stop accepting California IOU’s. The State of California, virtually out of cash, [...]
The Cost Of Easy Money – $14 Trillion and Counting
Supervisory Insights – Where The Money Went The FDIC released their Supervisory Insights report today which contains a detailed breakdown of the almost $14 trillion dollars committed by the Government to support the financial system over the [...]
Banks Loss Reserves Can’t Keep Pace With Troubled Loans
The latest FDIC Quarterly Banking Profile reveals that banks increased loan loss reserves by 11.5% and the ratio of reserves to total loans increased to 2.5%, an all time high. Despite the large loan loss reserves, the [...]
