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Meet The 171 Banks For Which The Margin Of Failure Is One Thousand Dollars

Tyler Durden's picture


At this point the majority of the population is transfixed by the biggest borrowers from the discount window. Yes, we know by now that the bulk of these were foreign banks, primarily Dexia and Depfa, but that is simply because only Bank Holding Companies, or depository institutions (and yes, last we checked Goldman deposit branches are still sorely missing), are allowed discount window access. Keep in mind that most banks were Investment Banks and not under the BHC umbrella until after the Lehman collapse. Which is why most banks only had access to the PDCF, which is how the Fed eliminated the loophole for emergency liquidity trickling down to everyone. The majority of US investment banks therefore accessed Fed rescue funding via the PDCF, of which JPMorgan and BofNY Mellon were intermediaries due to their position as the only two tri-party repo clearers and keymasters of the shadow banking mechanism. A quick glance at the PDCF confirms that all banks, pre their conversion to Bank Holdings Companies in the week following Lehman's failure, borrowed from the Fed, if not necessarily from the Discount Window (and yes, as Bob Ivry confirmed, Goldman did borrow directly from the Discount Window on at least five occasions post its "depository status" conversion despite Gary Cohn's perjury to the contrary even as Goldman repeatedly dipped in the PDCF both before and after Lehman's failure, even setting the precedent of first pledging defaulted bonds as collateral before any other solvent bank). Yet what we are more concerned by is not the mega borrowings: after all, it makes sense that if you need tens of billions you will go to the Fed. We are far more concerned by the banks for whom the marginal amount of cash was smallest. Below we present the 171 banks that had to access the Discount Window for the paltry sum of $1,000.00. That's right - these are the banks for whom the margin of failure is as low as one thousand dollars. Any readers who have cash deposited with these banks (many of whom have not yet been visited by the FDIC's Failure Friday phenomenon), are urged to immediately remove all funds and run, Forrest, run.

The banks in question:

1St Source Bk
Albany B&Tc Na
Alpha B&Tc
Ameriana Bk Sb
American Eagle Bk
American Nb
Ameristate Bk
Andrew Johnson Bk
Atlantic Coast Bk
Banco Popular N Amer
Bank Of Alpena
Bank Of Dudley
Bank Of Elmwood
Bank Of Fl Se
Bank Of Fl Sw
Bank Of Fl Tampa Bay
Bank Of Hiawassee
Bank Of Marin
Bank Of Miami Na
Bb&T Fncl Fsb
Belmont B&Tc
Benjamin Franklin Bk
Beverly B&Tc Na
Boone Cty Bk
Byron Bk
Capital One Bk Usa Na
Capital One Na
Cedar Rapids B&Tc
Centier Bk
Central Il Bk
Central St Bk
Chain Bridge Bk Na
Chesapeake Bk
Citizens & Farmers Bk
Citizens Bk
Citizens Cmrc Nb
Citizens Nb
Citizens St Bk
Clear Lake B&Tc
Coastal Cmrc Bk
Coastal Fcu
Columbus Cmnty Bk
Community B&Tc
Community Bk Of Tri-Cty
Community Cap Bk
Community First Bk
Communitysouth Bk And Tr
Connecticut Bk & Tr Co
Cornerstone Cmnty Bk
Csb Bk
Dnb First Na
East Carolina Bk
Eastern Mi Bk
Elizabeth St Bk
Enterprise Nb Of Palm Beac
Enterprise Nb Of Palm Beach
Equitable Bk Ssb
Farmers St Bk
Fidelity Bk
Finance Fact
Finemark Nb&Tc
First Amer B&Tc
First Century Bk
First Century Bk Na
First Chatham Bk
First Cherokee St Bk
First City Bk Of Fl
First Cmnty Bk
First Dupage Bk
First Ga Cmnty Bk
First Nb Danville
First Nb Midwest
First Nb Of Brookfield
First Nb Of Chester Cty
First Nb Of Muscatine
First T&Sb
First Tr Bk
Firstbank Fs
Franklin Svg Bk
Frederick Cty Bk
Freedom Scty Bk
Frontier Bk
Gateway B&Tc
Gateway Bk Of Cent Fl
George D Warthen Bk
Glens Falls Nb&Tc
Grand B&Tc Of Fl
Great Eastern Bk Of Fl
Greeneville Fed Bk Fsb
Harborone Cu
Heritage Bk Central Il
Hinsdale B&Tc
Home Fed Bk Corp
Home S&Lc
Home Svg Bk
Howard Bk
Idaho Tr Nat Bk
Ing Bk Fsb
Integrity First Bk
Irwin Union Bk Fsb
Killbuck Svgs Bk Co
Kress Nb
La Porte Svg Bk
Lake Cmnty Bk
Lloyds Tsb Bk Plc Miami Agy
Main St Bk
Mansfield Co-Op Bk
Marine Bk
Marine Bk Springfield
Mcintosh St Bk
Merchants Bk Of Bangor
Meredith Village Svg Bk
Midcarolina Bk
Middleburg Bk
Millennium Bcpbank Na
Minster Bk
Mitsubishi Ufj Tr & Bkg Ny Br
Morris Bk
Mount Vernon Bk
Mountain Valley Cmnty Bk
Mutual Bk
National B&Tc Of Sycamore
National Bk Indianapolis
Nationwide Bk
Nbt Bk Na
New Frontier Bk
Norstates Bk
North Bk
North Shore Bk A Co-Op Bk
North Shore Bk Fsb
North Shore Cmnty B&Tc
Northmark Bk
Northpointe Bk
Northwest Cmnty Cu
Northwest Ga Bk
Orlando Fcu
Oxford B&T
Park Ave Bk
Patterson Bk
Peachtree Bk
Peoples' Bk Arlington Heights
Pioneer Bk
Pna Bk
Premier Bk
Rainier Pacific Svg Bk
Red River Bk
River Cities Bk
Sandy Spring Bk
Security Nb Of Omaha
Signature Bk
Southwest Ga Bk
Statewide Bk
Sterling Bk
Strategic Cap Bk
Tower B&Tc
Traverse City St Bk
Treynor St Bk
Union Fsb
United B&T
United B&Tc Na
Unity Nb
Village B&Tc
Warren Bk
Washington Tc
Waterstone Bk
Webster Bk Na
Wheaton B&Tc
Whitesville St Bk

For those wondering what the full borrowing histogram looks like by bucket, here it is, by key distributions, with the mode between $10,000,000 and $50,000,000. And on the top side, there were 3 distinct discount window borrowings for over $50 billion, the biggest of which was for $61 billion by, surprise, AIG, and the next two were for CPFF (Commercial Paper Funding Facility) in yet another SPV shell funding scheme.


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Sat, 04/02/2011 - 21:56 | 1129012 macholatte
macholatte's picture


Nice work.


Sun, 04/03/2011 - 02:11 | 1129334 Eternal Student
Eternal Student's picture

Ditto. I'd also like to add one important thing which should be mentioned. If you want to see the health of your Bank, or find one which is in relatively good shape, the best resource on the net is here:

You can also use it for Credit Unions. And for amusement, you can look at some of the banks in this article, to see what a troubled bank looks like. From just a couple that I've seen, the FDIC used to be closing down banks which were in better shape a couple of years ago. Since then, the FDIC has seriously slacked off, and now these banks are operating with Troubled Asset Ratios which are way higher now.

Myself, I use Credit Unions. They are generally in better shape than the banks. And I look for one with a TAR that is much lower than the mean.

Sun, 04/03/2011 - 02:16 | 1129340 macholatte
macholatte's picture

How about forming a ZH syndicate and buying up some of these "troubled" banks for 50% of asset value via a credit line from Benny like the Soros machine did with Indy Mac. No money out of pocket & No risk.

Sun, 04/03/2011 - 02:26 | 1129348 Harlequin001
Harlequin001's picture

Just buy gold, and this won't matter...

Sun, 04/03/2011 - 02:28 | 1129351 Harlequin001
Harlequin001's picture

'How about forming a ZH syndicate and buying up some of these "troubled" banks for 50% of asset value via a credit line...'

but seriously, these losses are not finished yet, so even at 50% discount I think you would probably lose your money...

Sun, 04/03/2011 - 11:14 | 1129683 Urban Redneck
Urban Redneck's picture

That is what FDIC loss sharing agreements are for.  One must be either extremely stupid or extremely reckless to lose money with a banking license.

Sun, 04/03/2011 - 03:40 | 1129391 chumbawamba
chumbawamba's picture

I operate my own bank.  It's local and has one branch.  It has only one account.  On despoit are objects that are lustrous and dense.

You could consider me a community central bank of sorts.  Remember the golden rule.

I am Chumbawamba.

Sun, 04/03/2011 - 05:46 | 1129452 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Is ChumbaBank FDIC insured?

Sun, 04/03/2011 - 07:12 | 1129496 chumbawamba
chumbawamba's picture

Fuck no!  First (And Only) Sovereign Bank of Chumbawamba is inherently solvent.  We do not require government oversight.

I am Chumbawamba.

Sun, 04/03/2011 - 14:06 | 1129987 TheMerryPrankster
TheMerryPrankster's picture

Do I get a toaster if I open a checking account?

Sun, 04/03/2011 - 14:41 | 1130082 knukles
knukles's picture

Do I get to get toasted if I open a checking account?

Sun, 04/03/2011 - 04:44 | 1129415 Snidley Whipsnae
Snidley Whipsnae's picture

+1 I also use a Credit Union and have used the same one for almost 20 years.


Sun, 04/03/2011 - 05:27 | 1129445 Yen Cross
Yen Cross's picture

The ambulance chaser is back.

Sun, 04/03/2011 - 06:12 | 1129472 Hephasteus
Hephasteus's picture

Are you still mad that all the cool kids hate dollars.

Sun, 04/03/2011 - 08:31 | 1129549 Heroic Couplet
Heroic Couplet's picture

Thank you. I've seen this website before and had forgotten about it; and I thought BoA and Wachovia would have caused enough trouble without the credit unions getting involved. All the credit unions in North Carolina are in trouble, including IBM's Coastal Federal Credit Union. Also would point out, under the North Carolina Credit Union tab, I noticed that the Y axis does not always have the same values; the X axis does.

Sun, 04/03/2011 - 10:33 | 1129644 DarthVaderMentor
DarthVaderMentor's picture

Coastal Federal Credit Union, although still having a large number of depositors with a past or current relationship to the Blue Pig is not longer carrying the IBM name, to my knowledge. When I asked an office manager a few years back, the response was that it does not have any formal relationship with IBM anymore.

Sun, 04/03/2011 - 12:32 | 1129802 DosZap
DosZap's picture

An important bit of data left out of the FDIC Guarantee of $250 k per customer limit.

IF a bank bellies up, you could have to wait for a year or two to get THAT Insured money back.

It's not automatically back in your hands.

So, food for thought.

Also,one bank on the list in the DFW area that took 2B in bailout money, repaid it, and ar BACK over the mean.

They are in the swamp again.

Sun, 04/03/2011 - 09:34 | 1129600 Don Birnam
Don Birnam's picture

Staying in the same church but just a different pew, the estimable Lawrence Yun, Chief Economist and Bottle Washer of the NAR ( although the man's " .gov love" tone would suggest a Deputy Assistant Secretary at HUD ), is on C-SPAN this morning, as this is written. As can be expected ( angry callers notwithstanding ), the worst is behind is all skittles and rainbows. Just give it a little more time, good homeowners.

Sat, 04/02/2011 - 22:02 | 1129017 Sancho Ponzi
Sancho Ponzi's picture

Couldn't they have gotten a grand from the neighborhood payday loan store?

Sun, 04/03/2011 - 01:50 | 1129313 chumbawamba
chumbawamba's picture

I'm ignorant about this stuff, but I seem to recall that many banks were "forced" to take a loan even if they didn't need it, because the Fed wanted to save face for all the TBTF's by making everyone take a bailout so no one could be singled out.  Might these have been those banks?

I am Chumbawamba.

Sun, 04/03/2011 - 03:51 | 1129395 Eternal Student
Eternal Student's picture

I believe that you're talking about TARP, and it was some of the TBTF's which were forced to sign up for it. Here's the article on Paulson forcing them:

The banks in this ZH article are too little to give a d*mn about, and probably weren't worth Paulson even thinking about.

But the very amusing thing with Tyler's article is something that isn't very well known about TARP. You see, not every bank could get a TARP loan. The Treasury actually rejected a number of the smaller banks, because the Treasury thought they weren't good enough to try to prop up.

Or, in otherwords, only the smaller banks that the Treasury thought were likely to survive got TARP money. Being rejected for TARP was a very bad snub.

This has been kept quiet mostly, because if you look at the above list, a number of the TARP recipients there have already failed. That's lost TARP money, and something you won't hear much about, because it's part of the failure of the TARP program. Not even the bankers can tell what is a good bank.

Sun, 04/03/2011 - 05:50 | 1129458 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

In the recent debacle, smaller banks that did the right thing, that were prudent, have been hosed, big banks that did not do the right thing, that engaged in the practices that created the housing bubble, that went all in assuming Uncle Sam would be there for them if they lost, have received generous rescue packages

Sun, 04/03/2011 - 14:54 | 1130120 MachoMan
MachoMan's picture

Also something that isn't talked about much...  the bank runs on smaller and regionals when tarp was announced...  causing risk averse smaller institutions to try and pony up to the tarp...  fdic raised their limits shortly after to help curb the run...

Sun, 04/03/2011 - 12:29 | 1129808 DosZap
DosZap's picture


You sir are entirely correct.

Some banks that did NOT need bailing out, were FORCED to take loans.

No if's and's or but's. Why?, CONTROL.

Sun, 04/03/2011 - 02:30 | 1129352 Harlequin001
Harlequin001's picture

hell, I could have loaned them that...

Sat, 04/02/2011 - 22:10 | 1129029 Twindrives
Twindrives's picture

Have them call Pimp Daddy Ben, he's got plenty of free fiat to go around for his banker buddies.

Sat, 04/02/2011 - 22:12 | 1129033 TruthInSunshine
TruthInSunshine's picture

If you owe $1,000 to Goldman Sachs or JP Morgan, or their proxy, The Federal Reserve Crime Syndicate, they own you.

But if you owe over 30 billion to Goldman Sachs or JP Morgan, as AIG did, or their proxy, the Federal Reserve Crime Syndicate...

...they own you even harder and deeper!

*By own you, I mean they own the taxpayers, who are like...totally pwned.

Sat, 04/02/2011 - 22:14 | 1129036 Silver Alert
Silver Alert's picture

Is it possible that they borrowed 1K just to be sure it worked and/or open up a line rather than needing only 1K to remain solvent?

Sat, 04/02/2011 - 22:21 | 1129051 patb
patb's picture

i read it the same way

Sat, 04/02/2011 - 22:32 | 1129067 Tyler Durden
Tyler Durden's picture

Virtually all of these banks borrowed repeatedly from the Discount Window, often for amounts also much greater than just $1,000. And if $1k was a test of the Discount Window for wire transfer purposes every single bank would have been required to do it, not just 171 banks.

Sun, 04/03/2011 - 00:10 | 1129190 Creed
Creed's picture

 And if $1k was a test of the Discount Window for wire transfer purposes every single bank would have been required to do it, not just 171 banks.



This does not follow, it assumes all banks march lockstep to the beat of the FED drummer.


There are 1,000's of banks and it would not surprise me in the least that a small portion of them would test funds availability IN CASE it were needed.


There is hyperbole in the assumption all these banks would fail for lack of 1k. Love ya man, but this is some fail here.

Sun, 04/03/2011 - 07:52 | 1129517 SamuelMaverick
SamuelMaverick's picture

+1. My exact take on this .

Sun, 04/03/2011 - 09:15 | 1129583 AGoldhamster
AGoldhamster's picture

Add me too. Also A Tyler fan - bug also not smart enough to see the point!

Just 1000 bucks doens't make any sense at all.

Could as well be just another Maddoff scam too.

Sun, 04/03/2011 - 11:28 | 1129691 gkm
gkm's picture

Add me as well.  

You could make the suggestion that the banks that took 1k at least were worried enough to have to ensure the mechanisms worked smoothly so they could use the facility if needs be.  But then again, given where we were at the time, if you weren't worried then maybe you just didn't get it.  

Alternately, sometimes there is simply information to be gained by doing something.  Obviously not knowing the inner workings it is hard to surmise what that might be, but those who do know probably had some motive.

I'm not sure which TD this is but I'd have to say this is substandard.

Sun, 04/03/2011 - 00:21 | 1129201 Hephasteus
Hephasteus's picture

Maybe there's a 171 banks that the fed forced to use the discount window for 1000 and were ordered to buy one 1000 hooker with the money. But to do it only once to show that they were dirty enough to be part of the criminal banking industry.

Sun, 04/03/2011 - 07:08 | 1129494 i-dog
i-dog's picture

"to show that they were dirty enough to be part of the criminal banking industry"

Ding. Ding. Ding.

Sun, 04/03/2011 - 09:44 | 1129609 bugs_
bugs_'s picture

171 banks worried enough about their own situation to get off their ass and "test the system".  Either way you look at it you still come to the same conclusion about the Team 171.

Sun, 04/03/2011 - 11:00 | 1129671 Blano
Blano's picture

I don't know, these could have been banks who have nevery done anything like this before unlike Goldman, JPM et al.

How many of these banks are on the problem list??  Seems like that would be more telling.

Sat, 04/02/2011 - 22:32 | 1129071 Selah
Selah's picture

to be sure it worked

Like this is some kind of mechanical linkage?

How can they be sure that it will "work" again without repeating the "test"?


Sat, 04/02/2011 - 23:27 | 1129136 knukles
knukles's picture

You mean like the ECB/EU stress tests?  Repeat it until you're sure somebody, somewhere, somehow, for some yet to be discovered reason thinks that it just has something of a farts chance in a windstorm of being something functionally, operatively somewhat right and possibly somehow works for some reason.

Sun, 04/03/2011 - 00:17 | 1129118 Milton Waddams
Milton Waddams's picture

I was wondering the same; perhaps this was a drill to test operational readiness.  I guess the way to find out is to determine when the $1000 transactions occurred within all transactions of a single bank.  In other words, do they represent the first transaction between the bank and the discount window, signaling a test of operational readiness, or the last, perhaps signaling something much worse.

Sun, 04/03/2011 - 09:46 | 1129611 New_Meat
New_Meat's picture

we just changed finance systems and the test was for $0.01/employee.  I'm sure that my organization will find a way to recover that vast wealth. - Ned

Sun, 04/03/2011 - 10:51 | 1129664 Hulk
Hulk's picture

Free Samples!

Sat, 04/02/2011 - 22:14 | 1129037 SimplePrinciple
SimplePrinciple's picture

Capital One? I bet these banks are taking a token $1,000 with some arm twisting, just to show they are part of Team Bailout. I would not interpret this data to mean much of anything.

Sat, 04/02/2011 - 22:17 | 1129043 SignsAndWonders
SignsAndWonders's picture

The obvious spin on this will be that banks were testing the discount window to make sure the hookup was good in case trouble came in the future.

Sat, 04/02/2011 - 22:20 | 1129046 CaptFufflePants
CaptFufflePants's picture

Capital One Bk Usa Na
Capital One Na



Sat, 04/02/2011 - 22:31 | 1129047 SparkyvonBellagio
SparkyvonBellagio's picture

I think it's time for some payback.

These Guys are Worst then Rapists/Murders,,,, Why?


Rapists/Murders (though it's horrible and truly tragic) only PHHHHHUCK WITH A HANDFUL.



I smell a Gold/Platinum ALLTIME WORLD RECORD.

Don't mess with the legitimate small town banks and hard working souls.

Sat, 04/02/2011 - 22:30 | 1129066 Heroic Couplet
Heroic Couplet's picture

Excellent, but one point: what is "Coastal Fcu"? If it's IBM's Coastal "Federal Credit Union," the acronym needs to be clear "Coastal FCU."

Remember all the crap about "take your money out of banks and put it in a credit union, where it will be safe"? Agree that a credit union like IBM's may have just been testing out their ability to draw $1,000. May, may not have been the case.

Sat, 04/02/2011 - 22:30 | 1129069 ArsoN
ArsoN's picture

They were just testing their ability to draw funds.  Non issue.  

Sat, 04/02/2011 - 22:39 | 1129081 TruthInSunshine
TruthInSunshine's picture

Well, many of you claiming this is a non-issue may be interested to know that many of these banks are indeed already vaporware. I count 5 just in my home state that are on this list.

That may or may not change the fact that some/all/a few of them were just doing a 'test access' of sorts.

I don't know whether this is true, or not.

Sat, 04/02/2011 - 22:42 | 1129086 pitz
pitz's picture

Why do those motherfucking banks get access to the discount window, but us individual investors do not? 


I had some investments at the bottom that were quite illiquid and didn't have great bids, but had great assets underlying (probably a lot better than most of the shit pledged there).  Yet they got re-liquefied, and I had to wait months/years to see values turn around.


The whole concept of a discount window for just the banks alone is fraudulent. 

Sat, 04/02/2011 - 23:31 | 1129140 knukles
knukles's picture


Sat, 04/02/2011 - 22:45 | 1129087 americanspirit
americanspirit's picture

Good list of targets

Sat, 04/02/2011 - 22:48 | 1129094 cowsense
cowsense's picture

I broke into a cold sweat at the beginning of this article and and sprained my mouse roller finger as I feverishly scrolled through the list of 171 banks to see if my bank was one about to be gonged. I scrolled and scrolled and then....and then I remembered that I don't have any money in a bank. All my money is in metals, mostly silver and tractors and a pickup. I can sleep now.

Sat, 04/02/2011 - 23:28 | 1129138 yabyum
yabyum's picture

Sleep well amigo, just put the swiss chard in, the rest of the garden is a go. All the fiat in the world can not, and will not beat a home grown tomato.

Sat, 04/02/2011 - 23:55 | 1129166 tip e. canoe
tip e. canoe's picture


Sun, 04/03/2011 - 09:45 | 1129612 New_Meat
New_Meat's picture

wood chucks love 'em ;-)

Sun, 04/03/2011 - 16:45 | 1130343 Hulk
Hulk's picture

and we like wood chucks! you're safe for now...

Sat, 04/02/2011 - 22:51 | 1129096 Astute Investor
Astute Investor's picture

Interesting that Middleburg Financial makes the list.  I wonder if Sokol knew it when he built his 20% stake?

Sat, 04/02/2011 - 23:11 | 1129121 Hubbs
Hubbs's picture

Gateway Bank and Trust is this the one in Elizabeth City, NC, bought out by Hampton Bank, with @$400,000 bonus for a VP, who just recently resigned from Hampton Bank "to pursue other interests."?

Sat, 04/02/2011 - 23:15 | 1129124 ParaZite
ParaZite's picture

Bank run bitches!

Sun, 04/03/2011 - 01:21 | 1129287 rocker
rocker's picture

People just don't get this part.  I ran my bank three times and had to wait a week for MY money each time.

Hello, get most of your money out now. Later may be too late. Oh, by the way, my bank was taken over by WFC.

Enough said.  

Sat, 04/02/2011 - 23:26 | 1129129 agrotera
agrotera's picture

1000 dry runs...

Trillion dollar fraud...


Sat, 04/02/2011 - 23:26 | 1129133 chindit13
chindit13's picture

I'm going with the $1000 as simply a test.  Perhaps these banks all needed funding, but just wanted to test the efficacy of their systems first before dipping in for the big stuff.  Perhaps they, unlike many of their peers, had never before accessed the Fed's DW, so had to establish the link.

I think there is plenty of other stuff in the Fed data dump far more significant than this.  Just an opinion.

Sat, 04/02/2011 - 23:32 | 1129141 Tyler Durden
Tyler Durden's picture

The significance of this is that everyone from the very top to the very bottom is most likely insolvent. And the less TBTF one bank is, the greater the chance it fails permanently. Someone should do a cross reference between the list above and find out how many of these regional/community banks are on the Fed's endangered list or already "FDIC"ed. BTW, the so called "dry run" progressed from April 2008 through March 2009: one would imagine a concerted and concurrent test effort, not one spread out over a year. Lastly, some statistical sampling:

  • FIRST CHEROKEE ST BK borrowed $1,000 on 5/21/200, 9/25/2008 and 2/4/2009. Retest to make sure the wire still works?
  • GLENS FALLS NB&TC: borrowed $1,000 on 9/15/2008 and then again 10/10/2008? Ditto?
  • FARMERS ST BK: borrowed 700,000 each day from 12/26/2008 to 1/8/2009, and from 3/9/2009 to 3/13/2009, and then borrowed $1,000 on 3/12/2009? Reverse test?

Although yes, it is distinctly possible all these banks are perfectly solvent.


Sun, 04/03/2011 - 00:15 | 1129192 chindit13
chindit13's picture

Another guess:  these banks needed the money to buy the toasters promised to all those new accounts?

Or the joke of that time:  Buy a toaster and get a free bank!

Sun, 04/03/2011 - 02:56 | 1129368 dark pools of soros
dark pools of soros's picture

or the banks were just getting hit up by late night ATM runs by Charlie Sheen

Sun, 04/03/2011 - 07:03 | 1129493 blindfaith
blindfaith's picture



The point IS that the difference between solvency and insolvency is 1 cent.  




It maybe that 1,000 is the minimum the bank can draw.

A local banker manager that I was acquainted with back in 2008 told me precisely THAT, just as he sold everything and moved to Nassau.  The day the books don't balance, you are dead meat.

But the bottom line should be clear, the government, and the FED have totally decieved every American.  When do Americans get enough and get off their asses and into the streets?


Sun, 04/03/2011 - 10:32 | 1129647 kaiserhoff
kaiserhoff's picture

The criminal class is painting a statistical picture for consumption of the sheeple, as in, The Stock Market..., but I like your answer better.

Sun, 04/03/2011 - 05:58 | 1129463 Yen Cross
Yen Cross's picture

It;s the ongoing stress test Tyler I'll buy solvent credit unions!

Sun, 04/03/2011 - 08:05 | 1129526 eddiebe
eddiebe's picture

I don't get this at all.

If I was a banker and I was offered money at .5%, wouldnt I borrow more than a thousand bucks? Why not a million or a billion?

 Then after one hell of a party, just park the money in T bonds, like the big boys? Too weird.

Sun, 04/03/2011 - 09:20 | 1129587 AGoldhamster
AGoldhamster's picture

To borrow just 1000$ doesn't make any sense at all. It solves nothing.

I smell a rat here. What about calling such a bank and asking whether and why they borrowed - just those 1000$ - indeed?

This stinks.

Sun, 04/03/2011 - 10:50 | 1129661 chindit13
chindit13's picture


I looked over the PDF's again and I still think these were tests, even periodic tests before dipping into the Fed for the funds they really needed.  The likelihood that 171 banks would only be $1K away from insolvency, but nobody was $3K or $8K or $32K away from it seems statistically highly unlikely.  The second lowest amount I could find was $10K, and then $65K, $135K and onward and upward.  Of course I got bored going through them, so something might be there, but nowhere near to the same extent as the $1k's.  This fat tail of 171 banks on the razor's edge of insolvency at $1k just looks suspicious. 

By the way, the fact that my initial post was junked suggests to me, if you do not already know it, that you could start yourself a church, get tax free status, discounts on sacramental wine, and have a full congregation to boot.  Apparently taking exception to anything you write is the equivalent of burning the Koran.  When there is no debate, when there are no questions, all that remains are sheeple, albeit of a different breed than those who worship at the altar of the MSM.  Still, even sheeple fill the collection plate.

Sun, 04/03/2011 - 11:56 | 1129759 SimplePrinciple
SimplePrinciple's picture

"Apparently taking exception to anything you write is the equivalent of burning the Koran.  When there is no debate, when there are no questions, all that remains are sheeple, albeit of a different breed than those who worship at the altar of the MSM.  Still, even sheeple fill the collection plate."

Yep, noticed that myself.  But take heart that it is only the exception, not the rule.

Sun, 04/03/2011 - 15:30 | 1130185 godzila
godzila's picture


I'm 100% with you on this one. I don't know (yet) why those banks borrowed 1k$ but I'm pretty sure it was not a solvency issue. I will try to make some calls tomorrow to get the bottom of the story but I'm pretty sure that the astute readers of this blog will beat my timing :)

Sun, 04/03/2011 - 14:48 | 1130104 knukles
knukles's picture

The back office/operations guys just yucking it up.

Sat, 04/02/2011 - 23:36 | 1129143 dick cheneys ghost
dick cheneys ghost's picture

BLACK SWAN EVENT..........charlie sheen booed off stage in detroit...


the end is near....

Sun, 04/03/2011 - 00:18 | 1129200 The Axe
The Axe's picture

Hey,, Tyler its need to pour a smaller drink....relax....but not this much boooze....Jesus..

Sun, 04/03/2011 - 00:22 | 1129204 I am Jobe
I am Jobe's picture


Wow, you amaze your readers. Thanks

Sun, 04/03/2011 - 00:29 | 1129210 The Axe
The Axe's picture

Yes, Tyler  some of these banks are run by dentist, doctors and masons. They know shit about the system,  they are in trouble..and are pinging the system to see if its working..many will go down....add them up...see what their market cap is....all together less than JPM I guess......relax   wrong coon wrong tree wrong hound

Sun, 04/03/2011 - 23:26 | 1131260 mojine
mojine's picture

It is OK to put that "s" on the end of "dentist". Go ahead - it won't hurt a bit. Seriously - what is it with people who can not bring themselves to add an "s" to the end of a noun that ends in "st" when they mean the word to be plural?

Guests, dentists, anesthetists, fascists, optomists, etc. Come on. Get with it.

Sun, 04/03/2011 - 00:49 | 1129235 tmosley
tmosley's picture

Hmm, it seems to me that there must be some other source of funding that has "has accessed the discount window in the last X days" as a pre-requisite.  That is the only explanation that makes sense to me.  

Stealth bailouts?

From a typo I caught just above, you can't spell stealth without steal.

Sun, 04/03/2011 - 00:49 | 1129236 Eagle1
Eagle1's picture

This is totally WRONG.


I cannot in good conscience let this go without a response to correct the error


Banks access the discount window for $1000.00

to test  the system if they ever need it. Your conclusions are completely wrong

at the $1000.00 level. I can speak to this as a former bank examiner and

now securities examiner.

George R Humm, CFA

State of Alaska

Division of Banking & Securities

Financial Institution Examiner 



Sun, 04/03/2011 - 00:56 | 1129248 tmosley
tmosley's picture

Sure, but why do they access it multiple times?

Sun, 04/03/2011 - 01:36 | 1129306 Eagle1
Eagle1's picture

They have to test it periodically, just like you do with computer systems, security systems,. You cannot draw any conclusions from this list, you have to look at each banks financials rather than some mechanical item like this. We require our banks to have disaster plans, continuity of operation plans, etc. but this does not assume they will need them at any point in time, they are required by Federal mandates to comply. It makes sense to periodically test the system  no matter what it is. 

Sun, 04/03/2011 - 01:44 | 1129312 Tom Servo
Tom Servo's picture

I agree, it's possible that they had to run some regression testing, or do a bug fix and do a "live" test run to verify the bug fix.  If $1000 was the "business rule" minimum, which i would assume.

My inner IT geek would also surmise that there isn't a "TEST" system that Ben exposes for the banks to run their tests on.

Sun, 04/03/2011 - 11:28 | 1129710 Urban Redneck
Urban Redneck's picture

In the event of an actual emergency, TEST Bernank Ponzi notes are worth even less than REAL Bernank Ponzi notes. 

Sun, 04/03/2011 - 04:05 | 1129402 Harlequin001
Harlequin001's picture

Eagle 1

In your capacity as a bank examiner, can you explain why these banks file huge bankruptcies when their portfolios are revalued once given to another bank by the FDIC please?

many thanks,

Sun, 04/03/2011 - 08:04 | 1129528 Dr. Impossible
Dr. Impossible's picture

as an investor, gold owner...(and long FAZ holder!), owner of 7 business, and makes regular payroll. I'm CALLING YOU BULLSHIT!!!!!!

you, as a banker employee claimed "We require our banks to have disaster plans, continuity of operation plans," what was my treasury money even needed for? If there are/were long running plans as you claim. Did every CoP fail?? we have a universal "CoP" here in the US....IT'S CALLED BANKRUPTCY, or did you infer these bankers had this alternative plan all along in the there "CoP"? to threaten martial law, hold seige to my Congress with said "CoP" plan.

I'd tend to believe not. As some make claims of fraudulent banker activities, and some even make claims of high treasonous actions undertaken by these institutions. 

Oh and your comment " they are required by Federal mandates to comply".  Didnt Madoff have some kind of "requirements" aswell?  and how long did that go on for? And what were the highest levels of influence his fiscal capacity reach. how many polititicians recieved benefits from him, and his groups(including anybody who was a depositor of his) 

In addition, i ask you directly. When you recieve compensation for work renedered. Is it denominated in USD or FRN's....i want your full i gave mine.

CFA means nothing....i can buy 1 too...if you can't read, or comprehend english....i would suggest a new line of work...


Sun, 04/03/2011 - 11:48 | 1129748 Harlequin001
Harlequin001's picture

Dr Impossible the system is inherently insolvent. The more you bail it out the more insolvent it becomes. That's OK when the banking sector is relatively small but the problem is far more noticeable when the banking sector inevitably becomes bigger than the rest of the economy. This is the position we most certainly will be after this last round of bailouts.

The problem with a fractional reserve system of credit is that it becomes more insolvent by multiples depending on what the reserve ratio is. This consequence of this last bailout will be no different, but the turmoil will be that much more severe next time.

The problem is that the government needs the banks to sell debt to otherwise it defaults, so your entitlements are second priority to the needs of the country and everything you own and have ever owned goes into the pot to delay the inevitable default. The banks simply turned round to the Govt and said ' we're insolvent, either you bail us or you have no one left to sell more debt to and you are on your own'. And the govt gave them all your money through devaluation of the currency. It is a mistake in my view to regard 'your' congress as under siege because 'your' congress is part of the problem.

Without the ability to buy food and pay for food stamps by selling debt to these same banks, martial law would have been the result and still will be. Think 42 million starving Americans (currently on food stamps) roaming the countryside looking for food and when they take it think empty supermarkets in cities and nationwide food shortages and all that goes with it..

I am no banker but I know the problem lies not with the banks but with the government that needs to sell debt to fund deficits. Think 2.5% yield on a 5 year note. If rates rise to 25% it is unfeasible to sell debt. That means the govt must find not 2.5 cents on the dollar being the interest on the note but 100 cents on the dollar being cold hard cash. Think 40 times as much cash in circulation just to stand still. That's real banana republic stuff and it is a need of the government, not the banks that try by all means fair and foul to supply it.

There are two parties committing treason here, one is the government that runs deficits and the other is the greedy, lazy and idle that voted for them knowing that they had no, and had not even proposed any means by which they could pay for it. Well the bill just flopped onto the mat.

The banks in my view are simply enablers in all this, and yes they are bust as mathematics dictates that they inevitably must be. Personally I would have preferred the default and devaluation route because of its lesser collective pain, but the fact is that the decision to devalue to perpetuate a busted banking system represents a once in 400 year opportunity to get massively ahead of the game of devaluation by buying pm's, if you can keep it properly away from the tax net.

'Your' congress, 'your' country? Think 42 million Americans who will now vote for anyone who promises them more food stamps, think 42 million Americans who can no more afford to vote for anyone else than they can afford to consider the long term best interests of 'your' country. The fiat system of credit begets welfare.

Bankruptcy is inevitable, it would have been better if it hadn't come all at once and with staggeringly high inflation which is another inevitable consequence of interference by governments hell bent on spending more than they earn...

Sun, 04/03/2011 - 13:11 | 1129884 Dr. Impossible
Dr. Impossible's picture

"There are two parties committing treason here, one is the government that runs deficits" Wow.....wake need a GraNde cup of joe....a carton of cigs and atleast 2 months of reflection on this ZH website...

1. Separations of powers, Executive, Judicial, Congressional(est. by US constitution at a time when PM's(no counter party risk) were a major of the currencies in trade) along with paper certs. of all shapes and sizes.

2. Subverted by...<enter jeopardy diddy here> under the authority of <double jeapordy question here>

My research seems to lead me to believe, that there can be no Judicial help for the people, nor any congressional help for the people....because...they can simply be defunded, or just not funded to begin with, then "as the sands of time".

So my take is the FED, restricts/refuses to issue the "Credit and/or Debt" nessessary for the peoples canidates to persue office. 

With the rule-of-law enforced at the whim of funding, which is printed with no regard for value. I'll put my confidence in....the invention "The table of compounding percentages" that is what i believe brought mankind out of slavery...

Mon, 04/04/2011 - 00:25 | 1131388 Harlequin001
Harlequin001's picture

Dr Impossible, '"There are two parties committing treason here, one is the government that runs deficits" Wow.....wake need a GraNde cup of joe....a carton of cigs and atleast 2 months of reflection on this ZH website...'

If by 'GraNde cup of joe' you mean a good cup of English tea I am inclined to agree, I quit smoking after 26 years and I have been reading this website since it started. Perhaps now we can be a little more objective...

'1. Separations of powers, Executive, Judicial, Congressional(est. by US constitution at a time when PM's(no counter party risk) were a major of the currencies in trade) along with paper certs. of all shapes and sizes.' - No idea what your saying here, the banks are separate from Congress... If you're saying that they used to or should be be separate by statute then I agree, but then the government didn't give you as much welfare back then, and it didn't pay for anything with this much debt either. This government has needs now that the old one did not, and it is government that makes the rules.

'2. Subverted by...<enter jeopardy diddy here> under the authority of <double jeapordy question here>' - OK, big thinks bubble here...

'My research seems to lead me to believe, that there can be no Judicial help for the people...' - with all due respect your research doesn't go far enough. I see nothing to convince me that your research progressed any further than the first plausible cause that fitted your grievance.

'because...they can simply be defunded,' - spot on, because it is the government that allows you to own stuff, and it is the government that makes and changes the rules, and when that same government is in debt, everybody else does as decreed by government else they are terrorists and incur the wrath of the state. It is the government, not the banks that is the problem and they are elected by you...

'So my take is the FED, restricts/refuses to issue the "Credit and/or Debt" nessessary for the peoples canidates to persue office. '- the 'peoples candidates' pursue office using donations given by big business, the politically well connected and by the misled masses who know no better. If big business can make money from food stamps or carbon credits that's what you get, and the banks are required by government to produce enough new money to fund it. it is the government that is the problem, and it is the government that supports the banks, that's 'your' congress. Look around you, and tell me it ain't so.

'With the rule-of-law enforced at the whim of funding, which is printed with no regard for value' - my point exactly. The government needs money and will not prosecute those that provide it.

It isn't difficult to derived from this that you are a decent individual who is frustrated by it all, but your are, in my opinion, barking up the wrong tree. Get this wrong and you will not be making payroll on seven companies for long. Get it right and you will understand why there is no possibility that you can make payroll on seven companies for long. The problem is the system begets insolvency and needs to go. Unfortunately you are going to have to get rid of 'your' government to resolve it and I'm not seeing many politicians suggesting that.

The end result is either a popular revolt or a gold standard, one or the other, both of which will end in popular revolt in my view...


Mon, 04/04/2011 - 06:46 | 1131621 Dr. Impossible
Dr. Impossible's picture

So, i understand your coffee/tea thing, however...

i think you missed what i was trying to point out here.

***2. Subverted by...<enter jeopardy diddy here> under the authority of <double jeopardy question here>' - OK, big thinks bubble here...

now let's enter a few jeopardy answers.

in first box we can add (for argument sake)  American Bar Association, or American Banker Association.   c, if you connect the dots between the 2 you'll find some commonalities the word "Association"  have you ever filed for an "articles of incorporation" who did you register that with?...

my research shows it would be the office of the <double jeapordy question here>  clue: the answer is not god

...lets not forget the federal report claim this could have been averted (how i would ask, some juicy details there if you'd look)

and of the best of them (i think this is the correct link)     I'm almost certain, in the USA there are laws against doing business with entities known to be engaged in illegal activities

Do you think Ron Paul is a liar? were these comments of his a seditious act? AN attempt to cause civil unrest?... has RP done or said, or not produced necessary documention to attain his position?

and as for my payroll...i am ahead of merideth whitney by more then 6yrs, and have secured (in phys PM's) almost 7 yrs payroll now. The beauty of gold, as pointed out here on ZH, is its ULTIMATE CONVERTABILITY! Those 7 payrolls are about to expand greatly(to about 43 thru the summer, taking a busy busy summer here), as other business movers and shakers, are throwing in the towel, and basically giving me their businesses, for no cost, as i refuse to take loans, these owners seem to understand this concept, now, has the best chances to keep there workers employed, for management/fiscal reasons. I strive to remain delta neutral on business gains, and diversify extensively. There jobs are safe, and secured, by tangebles. 

I gotta say though, about our new "Hope & Change" strategy we have going here. it has been the most profitable I've seen in along time, as everybody around here now seems to have the ability to find a doctor that will tell them they can't work, they need to stay home and rest....LUV YOU OBAMA!!!

when running a basement hedge fund, you learn different trading strategies, makes me feel sorry for "Investors", as i see it to be very difficult for an asset to gain "value" when counter parties can employ "game theory trading", reducing any body's said "Investment holding" to a flip of a coin best

so I point to Eagle1...with his CFA...Eagle1 are the bankers willing to offer "credit ratings, and insurance, and use for collateral, a spin on a roulette table? Have you ever your life suggested to ANYBODY... to buy paper certs, for investment?

End result i've been pushing is "PRINT BABY PRINT"(hahahhah) just as you can kill your lawn with over fertilizing.

yes i may be alittle slow at times..(HS dropout and all)...but when people find out i dropped to so i could take a job an as pharmaceutical chemical compounder, (in aerosol', liquids, and powders). People quickly realize my strategies my be different. and have earned the equivalent of 3 MBA's now.

1 simple answer (and effective) would be....DEFUND THE EXECUTIVE'S OFFICE long as congressmen can claim the FED & IRS are illegal, i emplor you to reflect deeply on your occupation(hahah i made a funny). as the ABA,ABA,FED,IRS, have done nothing for me beside distort my true costs, and shackled my hands from employing more people. I do let them know this too.

Tue, 04/05/2011 - 01:51 | 1135810 Harlequin001
Harlequin001's picture

That was a classic headline. 'you can't have a free market that is ungoverned...'

a free market is by definition, ungoverned.

Dr Impossible, it is clear we agree on many things and I see no point in dwelling on the bits we agree on. I do not think Ron Paul a liar nor do I think him wrong, simply that it is too little too late, that too much damage has already been done and that a reversion to what he is suggesting is not wrong, but already far too painful for a society to willingly tolerate. I actually agree with what he says, and have done for some time simply that his plans cannot be implemented until the situation is absolutely dire.

I am impressed that you have already invested your payroll in PM's it shows a foresight rarely encountered, but my point is this, if you believe the problem to be with the banks then you see high inflation for which you would buy gold as protection and you need look no further.

If you see a deeper problem, as I do, then you see the same high inflation but with a government required to take your gold from you to cover its spending habits. Everybody and everything will be sacrificed on the alter of nationalism to the point where it will become your patriotic duty to give it up to a system guaranteed to require it.

I have neither defence nor respect for the behaviour of banks, neither can I have any for a government that spends more whilst it's broke, or those that vote for one either. My intent is to focus attention on what I consider to be the real underlying problem, because only then can you deal with and adequately protect yourself, something for which I believe you have taken only the first step. Maybe I can help you there.

Hopefully on ZH we can derive the real protection needed by investors but in the meantime I feel sure that we will have much to debate, and I look forward to that.

Sun, 04/03/2011 - 18:45 | 1130581 Founders Keeper
Founders Keeper's picture

[Dr Impossible the system is inherently insolvent. The more you bail it out the more insolvent it becomes. That's OK when the banking sector is relatively small...]---Harlequin001

This is a terrific post, Harlequin. Your exchange with Dr Impossible here is Top Notch. I hate even interjecting myself for fear of mucking up a beautiful exchange.

I agree with many, but not all, of your well written points. Your statements about "42 million" hungry Americans is very important. I hope many people read those passages and take in the gravity of what we're facing as a nation.

Dr Impossible was right about the banks though. Their tentacles are ever prying and guaranteeing themselves risk-free profits. Banks do NOT like competitive competition; they feel exempt from it. They spend day and night seeking ways to bypass competition, even at the risk of committing treason. For they have no country, but loyalty only to money.


Mon, 04/04/2011 - 00:38 | 1131404 Harlequin001
Harlequin001's picture

Thanks for the comment but with regard to the comment below,

'Dr Impossible was right about the banks though. Their tentacles are ever prying and guaranteeing themselves risk-free profits. Banks do NOT like competitive competition; they feel exempt from it' - Their profits are guaranteed by government because the government cannot afford to have them fail. In an environment where they cannot make profits due to the scale of their losses they are given exemption from normal accounting and stuffed with govt money to keep them afloat. That is not 'taken' by the banks but is given by government as a means to not only perpetuate the system but to also lower its borrowing costs.

It all depends on your point of view, whether you believe that the government is co-opted by banks, or whether you believe that the government is in charge and will do all that it can to survive when in debt.

I believe it is the latter, and for clarity it is beyond me to understand how anyone can believe that any government that leaves the nation in more debt than it can possibly repay is not treasonous...

Mon, 04/04/2011 - 07:06 | 1131626 Dr. Impossible
Dr. Impossible's picture

"Their profits are guaranteed by government because the government cannot afford to have them fail" think deeply about replacing the word "government" with the word "politician"

Sun, 04/03/2011 - 12:55 | 1129858 DosZap
DosZap's picture

so what was my treasury money even needed for?



Sun, 04/03/2011 - 14:58 | 1130115 knukles
knukles's picture

For shits and grins.
Do you have any idea how boring a back office job is, especially when all you ever do is get yelled at?
Gotta maintain your sanity somehow, so just fucking borrow often in little amounts from the Fed, especially when you don't need it and the President & Chairman of the Board get a letter from the examiner asking; "What the fuck do you think you're doing?  Do you know how much paper work this causes?"  And those were the letters in the good old days when they were mimeographed.

Sun, 04/03/2011 - 01:04 | 1129260 HoofHearted
HoofHearted's picture

I know the CEO of one of the banks on the list, and he is someone I trust. I have seen hime peel off more money to hand to someone in need at a moment's notice and not think twice about it. He sat on some of the Roundtables and man does he have some great stories. He has said publicly (and confirmed in more private situations) that his bank was forced to take money from this fund so as not to let everyone see who was good and who was bad. He specifically asked, "What if I refuse?" He was told, "Well, then, we will have regulators at your corporate office on Monday to make sure you aren't in need of some capital to meet capitalization levels that make us happy." Some of the solvent banks were forced to take this so that the guilty could hide. Now some may have need the grand to make payroll on Friday afternoon, but that really seems to be stretching it. I'd go with Occam's Razor here. Tests of the system and the gun in your back so that nobody knows who was swimming naked and who was covered.

Sun, 04/03/2011 - 04:19 | 1129404 Harlequin001
Harlequin001's picture

but why force anyone to take this money if the Fed had no intention to disclose it?

What's more, if you only borrowed $1,000 who's kidding who? Just look for the big borrowers, pull your cash and run...

It speaks volumes that you have a banking system that requires this kind of shenanigans in a deliberate attempt from the very top to mislead everyone just to keep going. If there was any value in what these banks hold as assets there would be no need.

How do you value a bank if you know this kind of behaviour is needed?

Where are all the other banks that didn't need it? There must be thousands...

Sun, 04/03/2011 - 08:53 | 1129571 SilverIsKing
SilverIsKing's picture

"but why force anyone to take this money if the Fed had no intention to disclose it?"

When Bernanke is asked under oath how many banks took the money, he doesn't perjure himself when he says hundreds.

Sun, 04/03/2011 - 15:00 | 1130133 knukles
knukles's picture

Eye-yi-eeeee, the whole system was collapsing, thousands of borrowers of Biblical Proportions, Gogg and Megogg asking for funds, catholics and protestants commingling offering trays, sharing wafers and wine.... the Book of Revelations meets Hope exiting Pandora's Box.... 

It was the right thing to do then and I'm doing the right thing now.

Sun, 04/03/2011 - 07:16 | 1129498 Hubbs
Hubbs's picture

We wil call this the bait ball defense, whereby schools of small sardines form a huge swirling ball as defense against predators such as tuna, swordfish, or dolphins. By synchronizing  their movements in one swirling ball, it makes it harder for the predators to pick off individuals.

Very interesting comments re: this is a test of the emergency insolvency system...

Why then only 171 banks?

What would even be more helpful is to list each bank above and beside it in (), indicate the # of "test runs" by each bank.

Sun, 04/03/2011 - 09:01 | 1129578 Dr. Impossible
Dr. Impossible's picture

And i grew up with the families that own and operate the very first bank on that list...

1st source. Whats funny is, my researched proved ahead this situation was coming, as i had it forecasted as soon as it was announced Bush Jr was assigned the presidency.

I released these findings to the heads of several high worth locals bankers.And i was deemed 'politically incorrect" out-casted...even nefariously lied members of the "ABA" in attempts to defame me and remove my creditability in a court. Then the facts come...hahahahhahahaha....fuggarz.


research 1st source bank, find the connections between them, and a now defunct company called "Madison Center' in South Bend, IN. Add in who/how the property valuations made(lending options were assessed(people involved) and a clear image on a micro scale can be seen of what has happened with the "deep capture" of our banking, legal, regulatory systems have left us to deal with. Its funny, in that local even the judges(well at least 3 of them) were appointed by these groups. Just to ensure an even flow of "volunteers" to this institution. and it still failed. Further, no member of the indiana state bar, nor surrounding areas, are willing to take up this issue , as my research has found, "every member of the court, enjoys the services of these institutions." ..even the states AG is refusing to bring forth the full evidence that proves this. To make this even more juicy for you readers....even "The Law offices of Barns & Thornberg" are involved....

And yes, you all are welcome to the idea that i am "by declaration" stating 1st source is involved in 'Fraud upon the Court". through a concerted effort..can you say R.I.C.O.???

Sun, 04/03/2011 - 01:19 | 1129276 defender
defender's picture

Since I have no knowledge of the inner workings of bank financial statements, could you comment on a bank doing this multiple times?  Also, why $1000?  Banks regularly ask me to test an account with $.01 to make sure the number is correct, and this is quite a jump from there.

some examples listed here:

Sun, 04/03/2011 - 01:37 | 1129308 Eagle1
Eagle1's picture

See my post above. 

Sun, 04/03/2011 - 09:04 | 1129580 SilverIsKing
SilverIsKing's picture

Doesn't explain why ALL banks didn't run this "test".  Why would some banks run the test and others not?

Sun, 04/03/2011 - 11:44 | 1129738 Urban Redneck
Urban Redneck's picture

The worth of a single penny to the average person is significantly more than the worth of $1000 to the FED.  However, while a person can use a credit or debit card for an amount less than $1, even the lowly local bank will have a required minimum for loan origination services.  Since there do not appear to be any transactions for less than $1000, I think it is a safe assumption that $1000 was the minimum requirement for the time period covered in the spreadsheet.    

Sun, 04/03/2011 - 01:21 | 1129288 nah
nah's picture

we still own the juice just chill out

Sun, 04/03/2011 - 01:40 | 1129309 Itsalie
Itsalie's picture

$10b or more, nearly 1000 (one thousand) occasions, woo hoo !

Sun, 04/03/2011 - 01:52 | 1129319 chumbawamba
chumbawamba's picture

I want to see mother fuckers hang for this shit.  I want the executions televised, in 3D.  I'll even go out and buy a mother fucking 3DTV and subscribe to cable so I can watch it live.

But no, they'll sooner prosecute me for tax evasion than they would these guys for racketeering, fraud, embezzlement, malfeasance, treason, etc.  And the irony would be completely missed.

Guess we'll have to take matters into our own hands.

Tick tock.

I am Chumbawamba.

Sun, 04/03/2011 - 02:05 | 1129327 BigDuke6
BigDuke6's picture

Thats the spirit - they've been fucking with us for generations and it keeps going on.

It seems worse than ever now.

For those that feel the need to buy PM's here is a useful guide as we near the times where counterfeiting will raise paranoia in most with a few ounces stashed away.


Sun, 04/03/2011 - 08:08 | 1129531 eddiebe
eddiebe's picture

You go Chum!

Sun, 04/03/2011 - 02:08 | 1129330 Eagle1
Eagle1's picture


You have to stop this nonsense. Banks routinely test their access to the system 

as well as test their internal IT systems, proof systems, balance systems and so on.

There is absolutely no correlation between a discount window test and the financial 

health of the bank. Think about it...would $1,000.00 make any difference to a bank with 

10 or 20 million in deposits?

You can find me on the web if you want to pursue this further next week.

George R Humm, CFA

Financial Institution Examiner

State of Alaska

Division of Banking & Securities

It's 10pm here and I am tired from a week long head cold but guys, be realistic, there is 

no correlation here, just some small banks making sure the system works.

If you want to get excited, keep your focus on the TBTF banksters


Good Night!

Sun, 04/03/2011 - 03:32 | 1129388 chumbawamba
chumbawamba's picture

Wow.  The Man reads Zero Hedge.

Rock on.

I am Chumbawamba.

Sun, 04/03/2011 - 07:30 | 1129503 mogul rider
mogul rider's picture

where else would he get his news and viewpoints.

Everything else is shit


thanks Tyler

Sun, 04/03/2011 - 16:01 | 1130238 Dr. Impossible
Dr. Impossible's picture

Chumbawamba...for along time i've read your comments, and had deep respect for most.... but to encourage a person like eagle1... is just below the belt.

to prove my point, lets research MERS corp activities in Alaska, I wonder if there would be a claim for a lack of "Honest Services"  involved in the Alaskan Banking community. I wonder if anybody in Alaska has had any title/mortage/lending discrepencies. that my have beeen overlooked by "regulators"

Sun, 04/03/2011 - 04:53 | 1129420 UpShotKnotHoleGrable
UpShotKnotHoleGrable's picture

Eagle 1, could you explain the "Alaska Permanent Fund" and how much each resident of the State gets every September? Thanks.

Sun, 04/03/2011 - 09:00 | 1129579 bookwurm
bookwurm's picture

Yes, They will ask him to submit his resignation Monday...

Sun, 04/03/2011 - 03:16 | 1129379 BlakeFelix
BlakeFelix's picture

I don't get why banks didn't use it more. Couldn't they arbitrage it for free money? What was the downside?

Sun, 04/03/2011 - 06:09 | 1129468 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

The downside?  The less Uncle Sam ya got in your life, the better your life.

Sun, 04/03/2011 - 03:44 | 1129393 DarthVaderMentor
DarthVaderMentor's picture

Very interesting.......but not funny for some institutions! Transparency shows which of these mini-emperors has no clothes!

Sun, 04/03/2011 - 04:00 | 1129399 savagegoose
savagegoose's picture

3 banks accessed it for $100B , to see if it wiorked and they need to access it incase of a real disaster

Sun, 04/03/2011 - 04:51 | 1129421 Yen Cross
Yen Cross's picture

Can anyone speak the unspoken? Credit Unions.

Sun, 04/03/2011 - 05:13 | 1129436 Handle with care
Handle with care's picture

Slightly related and I think worth a post of its own.  Wachovia laundered $378 billion for murderous Mexican drug gangs and paid a fine of 2% of one year's profits and not a single person went to jail.

And here's what makes it slightly relevant to this post:

"The conclusion to the case was only the tip of an iceberg, demonstrating the role of the "legal" banking sector in swilling hundreds of billions of dollars – the blood money from the murderous drug trade in Mexico and other places in the world – around their global operations, now bailed out by the taxpayer.


At the height of the 2008 banking crisis, Antonio Maria Costa, then head of the United Nations office on drugs and crime, said he had evidence to suggest the proceeds from drugs and crime were "the only liquid investment capital" available to banks on the brink of collapse. "Inter-bank loans were funded by money that originated from the drugs trade," he said. "There were signs that some banks were rescued that way.""




Sun, 04/03/2011 - 05:33 | 1129448 Yen Cross
Yen Cross's picture

That was a bloody post. Tell the scumbag dope, dealing drug dealing , dirt bags that  (I)have my rifle half cocked.

Sun, 04/03/2011 - 05:54 | 1129461 SunBlaster
SunBlaster's picture

Bank Of Alpena -

I'd be scared giving her ma monee!

Sun, 04/03/2011 - 05:57 | 1129462 SunBlaster
SunBlaster's picture

Oh quick check on Bank Of Elmwood shows it's been closed since 2009, guess that $1000 didn't help after all :oP

Sun, 04/03/2011 - 06:41 | 1129484 prophet
prophet's picture

"The significance of this is that everyone from the very top to the very bottom is most likely insolvent."

Just trying to follow along.  I thought the PDCF was a liquidity mechanism not a solvency test.  As I understand it, a leveraged Ponzi only needs a slight liquidity crunch to become insolvent.  The inference is that if the institution is that close on liquidity needs they must be insolvent?

Liquefy or die.

P.S. - You can thank Epsilon for all that new junk mail you've been getting.

Sun, 04/03/2011 - 07:34 | 1129505 mogul rider
mogul rider's picture

What is clear, as Tyler pointed out, these banks are busted. Neddling over whether the 1K was this or that is meaningless.


When the music stops there will be 7 chairs. One for each of the TBTF banks and all the others disappear into the ether.


It's a Wonderful Life Part 2

Sun, 04/03/2011 - 07:39 | 1129508 mogul rider
mogul rider's picture

When QE2 stops in June the system will wobble and start the next leg down. Just like the 30's.


Prepare accordingly. If QE fission (3+) comes then the the party may continue.

I am not convinced of that.I think the Bond market will have it's day and this experiment ends.

When will this toielr paper barage end, that will be the day when the Earth wobbles.

We can then watch all states default and start anew as the TBTF bankers go on a bahamian holiday secure in knowing that they brought forth WW3 and saved their asses.

Really shouldn't they all be hanging in the town square as a reminder to those who put elites and greed higher than society and democracy.

IMHO - peace (Soap box taken down)

Sun, 04/03/2011 - 09:38 | 1129602 AGoldhamster
AGoldhamster's picture

Agree - we've just build the left S of a SHS in the DAX.

Now comes the H towards end of May.

And then it's 5 before 12 before game over.

Look at that HUGE triple top 2000, 2008 and now 2011

See ya below 3500 again.

If your broker still alive then.

Sun, 04/03/2011 - 07:41 | 1129509 jkruffin
jkruffin's picture

So, does anyone else believe its time for the NATIONAL STOP PAYING YOUR MORTGAGE EVENT?  I'm sure Ariana Huffingtion would spread the word, along with some other reliables.

If everyone in this country stopped paying their mortgage all at once, within 2-3 months the problem would be solved, as the too bigger to fails now, would be wiped out.

Sun, 04/03/2011 - 08:28 | 1129546 eddiebe
eddiebe's picture

Sorry to disagree. If everybody stopped making payments, the banks would just own all the houses, and you would be living in a tent on BLM land til the cops told you to move along.

Sun, 04/03/2011 - 09:39 | 1129604 jkruffin
jkruffin's picture

I bet you the Uzi and Turret Gun on the property says I don't live in a tent.  They can't foreclose on 100 million homes if everyone collectively stops paying until the rules are changed of the game.  See there are two things I dare a bank to try on me:

1. Try to come and take my home, when I have asked repeatedly to get copies of the original note, and have gotten no response.  Completely ignored I might add.

2. When I go to the bank, and they tell me they don't have my money, or they can only give me ten cents for every dollar

I will guarantee you there will be alot of news to report that day if that ever happens to me. Hypothetically speaking of course................

Sun, 04/03/2011 - 13:21 | 1129898 aerial view
aerial view's picture

agree-yet the masses are weak, dumb downed, afraid to do anything about injustice which is the main reason it continues. This is probably the best reason for unions as it allows the masses to unite over certain issues (right or wrong) and attempt to fight them. Of course, the best union would be if all Americans took action (not paying the mortgage, taxes, etc) and demanded full transparency, honest regulation and prosecutions for law breakers.

Sun, 04/03/2011 - 07:47 | 1129512 mogul rider
mogul rider's picture

BTW moved all assets offshore to avoid the onslaught of taxation coming. My family too.

See ya.

Tyler you should do soemthing on this becuase no one is talking about it really. The only place left to suck is the taxpayer and they are working that now.

You all weep about this and that. You ain't seen nothing yet.

They are gonna tax you till you break.


Maggie Thatcher said" Socialism is wonderful till there's no one left to tax" Obama and his Labour National Socialism Party are gonna ruin your day. 

Sun, 04/03/2011 - 07:45 | 1129514 Ned Zeppelin
Ned Zeppelin's picture

Assistant to Fed Prosecutor: "Sir, about Gary Cohn's perjury? I read it on Zero Hedge. It's all right there."

Head Prosecutor:  " Look, Mr. Cohn is a busy man. He probably just forgot. He misspoke himself. There's no case here." 

Assistant to Fed Prosecutor: "huh?"

Head Prosecutor: "Oh, and next time I hear you're getting your information from Zero Hedge, you're fired." 


Sun, 04/03/2011 - 08:13 | 1129536 johnnymustardseed
johnnymustardseed's picture

This proves what we already knew, the entire banking system has failed and it continues to be propped up with free money. Free money has been used to give the sheep the illusion that all is well. Continue prepping because it will come to an end. 

Sun, 04/03/2011 - 10:01 | 1129619 topcallingtroll
topcallingtroll's picture

  I thought your goal was to help the rabble see the light, and perhaps influence those in a position to do something about your legitimate concerns.  The "people who count" like the Alaskan bank dude who commented earlier are going to quit reading if analysis is misleading.

Yes I know that I swore off "concern trolling" but I have a mancrush on you and want you to succeed.  Now back to my chickies. 

By the way anyone else who wants to build a harem it's Ashley Madison, Adult Friend Finder, friendfinder asian and interracial will be a playground for a moderately successful white guy who is nice and height weight proportionate.  You might as well spend the twilight of the american golden age in style.  You have to spend the money and go premium and be patient.  Your can't be overweight as a guy, but it was good motivation for me to lose 30 lbs.  Be honest and never lie about your situation.  Liars are not respected, and it is unnecessary.  If you are nice, young and have six pack abs you will have all the MILFs you can stand.  I wish I had known about MILF's whem I was younger.  Being older it took me a year and three months, but now I have two chickies and a wife who all like each other.  But who would have thought a guy like me could get tired of sex and want to sneak away every once in a while so I can engage in my true elicit pleasure, zero hedge.

Sun, 04/03/2011 - 10:36 | 1129650 prophet
prophet's picture

One possibility is that G7 actions will obviate/delay the need for an explicit QE3 by the fed.

Sun, 04/03/2011 - 12:04 | 1129776 Caveman93
Caveman93's picture

Now don't get me wrong but the dollar is toast. That being said, I have been in the banking operations realm for over 17 years and I can deduct that these institutions which did the 1K draw did so to purely test their access to the window in the event of a bank run. This is assuming the FED was implementing a minimum bank draw amount of 1K. Just like on the old HELOC's, your minimum draw amount was $250.00. Same concept. I would have tested this too seeing how uncertain things were at that point in time. Just glad they didn't need more.

Sun, 04/03/2011 - 13:13 | 1129889 glenlloyd
glenlloyd's picture

To verify a test draw we would need to see the frequency of access and the amounts for each institution. A test draw would occur once, maybe twice and for the same token amount. If we see repeated draws for various amounts it would be easy to make the case for need.

Sun, 04/03/2011 - 14:49 | 1130108 Caveman93
Caveman93's picture

Agreed. I don't know about you but, I'd rather keep what cash I want in a bank with one which never needed billions from the window. If $1k is all they "needed", I'd feel better knowing the cash was there versus a BNY or JPM.

Sun, 04/03/2011 - 12:08 | 1129780 css1971
css1971's picture

Oh, and the Irish taxpayer is to be shafted on the behalf of the French and Germans.


Up Up and AWAY!!!


Sun, 04/03/2011 - 13:35 | 1129925 SouthHedge
SouthHedge's picture

I know most of the folks that read this site think all banks are insolvent and I understand the point.


To say though that a bank is in trouble simply because it had $1000 in borrowings as of a certain date is silly.  Sandy Spring, for example, raised $100 million in three days last year.  





Sun, 04/03/2011 - 15:34 | 1130196 godzila
godzila's picture


I'm sorry but this whole story is rubbish.

Mon, 04/04/2011 - 14:11 | 1133414 Eagle1
Eagle1's picture

We are far more concerned by the banks for whom the marginal amount of cash was smallest. Below we present the 171 banks that had to access the Discount Window for the paltry sum of $1,000.00. That's right - these are the banks for whom the margin of failure is as low as one thousand dollars. Any readers who have cash deposited with these banks (many of whom have not yet been visited by the FDIC's Failure Friday phenomenon), are urged to immediately remove all funds and run, Forrest, run.



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