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Some Friday Socialism Courtesy Of The FDIC, Ahead Of Bank Failure Friday
In an act unprecedented nobility, granted using other people's money, the FDIC sent out a release today, encouraging its loss-share partners who have acquired failed banks on the back of taxpayers' footing the bulk of the balance sheet risk and cost, essentially guaranteeing profits for these same partners, to "consider temporarily reducing mortgage payments for borrowers who are unemployed or underemployed." The FDIC's recommendation: "to reduce the loan payment to an affordable level for at least six months." And the kicker, once again subsidized by those taxpayers who live within their means yet do not find it critical to live in a house they can not afford: "losses incurred in subsequent foreclosures or short sales are covered losses."
So there you have it - yet another wealth redistribution program courtesy of a late Friday release by the administration. Money flowing from taxpayers, stupid enough to be responsible with their money (and, heaven forbid, to have dollar denominated savings that Chairman Ben wants to see dead not alive) end up funneling their money to the FDIC on three occasions: i) first to eat the bulk of the cost associated with any bank failure, while the good assets are covertly shifted over to "loss-share partners", ii) to have these same loss-share partners not charge full mortgages of those individuals who, following the American dream, and the American max the credit card plan, are unable to afford living in a house, yet who find themselves in that 16.8% of unemployed or underemployed category, and iii) to foot the final bill when inevitably, after 6 months, these same individuals redefault once again.
The full press release here:
As part of its loss-share agreement with acquirers of failed FDIC-insured institutions, the FDIC is encouraging its loss-share partner institutions to consider temporarily reducing mortgage payments for borrowers who are unemployed or underemployed. This program will provide additional foreclosure prevention alternatives to these borrowers through forbearance agreements that will give them an opportunity to regain full employment and avoid an unnecessary foreclosure.
"With more Americans suffering through unemployment or cuts in their paychecks, we believe it is crucial to offer a helping hand to avoid unnecessary and costly foreclosures. This is simply good business since foreclosure rarely benefits lenders and would cost the FDIC more money, not less," said FDIC Chairman Sheila C. Bair. "This is a win-win for the borrower, who can remain in his or her home while looking for a new job, and the acquiring institution, which continues to receive payments on the loan. Ultimately, by reducing losses under our loss-share agreements, this approach helps reduce losses to the FDIC as well."
The recommendation to loss-share partners applies where unemployment, or underemployment, is the primary cause for default on a home mortgage. In such cases, the FDIC is urging its loss-share partners to consider the borrower for a temporary forbearance plan, reducing the loan payment to an affordable level for at least six months. The monthly payment during this period should be established based on an affordable payment – given the borrower's circumstances – and it should allow for reasonable living expenses after payment of mortgage-related expenses. The reductions in mortgage payments during a temporary forbearance period are not covered losses under the loss-share agreement with the FDIC, though losses incurred from subsequent permanent loan modifications are covered. If the home preservation efforts are ultimately unsuccessful, losses incurred in subsequent foreclosures or short sales also are covered losses.
Acquirers of failed insured institutions who agree to a loss-share arrangement with the FDIC must abide by the FDIC Mortgage Loan Modification program for assets purchased from the failed institution. The program's objective is to modify the terms of certain residential mortgage loans to improve affordability, increase the probability of performance, allow borrowers to remain in their homes and increase the value of the loans to the FDIC and assignees. The program provides for the modification of "qualifying loans" – those that meet certain criteria – by reducing the borrower's monthly housing debt to income ratio (DTI ratio) to no more than 31 percent at the time of the modification and eliminating adjustable interest rate and negative amortization features.
In a nutshell - socialism - FDIC style.
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So I guess those payment reductions reduce the value of the MBSs those mortgages were packaged into?
Ring, Ring "Hello, Mr. FASB?"
The beatings will continue until morale improves
Tyler
Is the reimbursement of "covered losses" limited to just lost principal or does it include reimbursement of accrued interest as well?
Should be interesting weekend:
On the Edge with . . . Rob Kirby
http://maxkeiser.com/
The banks will NOT reduce the payments for even 1 bill cycle. Who is the FDIC kidding? the banks have the consumers right where they want us.
does this include foreign banks as well?
sorry, wrong reply to.
do we get bonus points for naming names? (cough keycorp)
greatsatan...could you please expand a bit? I'm genuinely confused and quite interested. thank you.
thought this was interesting
my original reply was meant for the over/under hope that clears the confusion
got it...thanks for the explanation.
i picked up that optionmonster article on google finance earlier and got curious.....key simply has not participated in most of the banking rally and that kind of put activity one week away from opex is notable. i understand their problems like that of other regionals (key has cre issues naturally, plus some c&i as i understand) and wonder if perhaps they are a candidate for our fdic friday party, particularly given what appears to be their tbtf status.
well theres always next week :)
Accepted.
But, it wasn't.. who is key's daddy?
Over under for this week is 4 ; Place your bets.
under
ill take the over.
anyone here work at FDIC? how many banks can you close on a weekend, logistically?
7/31 - 5
8/7 - 3
8/14 - 5
8/21 - 4
8/28 - 3
9/4 - 5
9/11 - ???
With an over/under of 4, 4 is not an option. I am going with 4 anyway.
The maximum so far is 6. And that's only because the FDIC closed a bank holding company that had multiple bank charters.
FYI The banks owned by a bank holding company are cross liable - meaning that if bank holding company owns 3 banks and bank 1 is closed, banks 2 and 3 have to reimburse the DIF for any losses incurred in closing bank 1. The reimbursement usually makes banks 2 and 3 insolvent, so the FDIC closes all three banks at once
Ohhh, hay woe woe woe... I was not told this before... but I stick with under...
Duplicate
http://www.321gold.com/fed/temp_bank_res.html
I'm saying under. Probably 3.
Gold market is about to be ripped to shreads. I don't think China can afford to buy on dips any more and will likely try to open the firehose just a bit wider. That will set off americans running to gold here which will drain banks and money market funds. I think china is close to having enough supply that full out buying will inflate their assets enough to justify it. So it looks pretty calm right now from the discount window. The can is kicked further down the road.
Ripped to shreds? That sounds like gold @ $900 but on the other hand, you say "That will set off americans running to gold here..."
Please clarify your take on things. Thanks.
No. I'm just guessing here but I can't see gold EVER seeing $960 again even under the most brutal liquidation. The discount window is heavy but not as heavy as it should be so the propaganda machine is working some so they will likely feel comfortable leaving dead banks out in public. Ripped to shreds doesn't mean drop in gold it means people fighting in aisles to get limited supplies of PS3's at christmas type of ripped to shreds.
If you think of all of humanity as being made up of 3 basic components. Those in the spiritual stage of developement, those in the individuated stage of developement and those in the herd state. The spiritual and individuated are able to control the herd if they are bent that way or stick outside the herd and look at what is going on. The herd state is unable to disconnect themselves from the herders. It's like if you take 2 dogs and keep them together and they become good friends. When one acts afraid of lightening the other picks up the fear and eventually learns to be scared of the lightening. When the gold market gets pummeled then the main avenue to steal wealth from the distorted perception of the illusory not adding up monetary system becomes threatened and the herd will respond. That's the problem with control. It works both for you and against you.
Thanks. I agree. It's just a matter of time before the lid is blown off and in my gut, I feel we are getting very close.
8
Over. 7 is my lucky number.
i'm going over with 6.
corus.. y/n?
i say no on corus....they are really trying to do that split up maneuver and from the fdic perspective it's much like the old rolling stones hit...."time, time, time is on my side, yes it is!"
Corus is a rack 'em and stack 'um proposition... You should know this DH
http://www.dailymotion.com/video/x18v7u_rolling-stones-time-is-on-my-sid...
it's a yes
I'm wrong (again)!! just checked fdic dot gov...corus is out.
I'll work the $ line. +/- 1.7B what are you covering?
over/over.....I'm saying 5 closed costing the FDIC $2.6b
I'll take the under this week. $10 straight.. Odds +/_ to ur content
zarmax.. where R U...?!
Layne....UNBELIEVABLE!!
from the fdic email re: Corus: The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.7 billion.
are you really Sheila Bair?? LOL!!
She be runnin' High Sreet and Foothill like a hoe on da run from the 'hound. hehe
Gotta love the DH brother man. You know I have the grocery.. That makes 3 in a row!!! hehehe
ZARMAX... My Paypal is a waitin' 4 ya..... WhoT! WhoT!
DOH! I lose, it was 5.... just more proof I am just an angry unemployed loser... I can't even get failure right....
Ya think so?
http://www.youtube.com/watch?v=TDF4kOLCt1M&feature=PlayList&p=06005A4044...
Hellz yeah, wurd, ya huRRRRd! Goin' on my iphone! They don't spit it like this no more...
Thanx Layne!
http://www.youtube.com/watch?v=izB85LUlygE
the 046 off E-14 & Highland.... Original..
Irish curse my a**!
Ohhh got it, I was looking at the updated date, not the closing date, so there were only 2 closures this week I guess.. soooo I win! woooo hoooo, my self esteem is back, I'm goin' to the club to celebrate with a fuzzy bunny!!!
http://www.youtube.com/watch?v=Y_SppSYMdbk
hehe.. Not a bit of skyline my a**\BTW.. WhoT!
http://www.youtube.com/watch?v=7z55qz9K_2A&feature=related
It iz what it be z!
The Thizzle Wiggle! ha
You two should be very, very ashamed of yourselves :-) But I suppose boys will be boys :-)
uhhhh that's Boizzzz if you please... big difference!
(hint: it's the price of their toizzz)
girlz be more that that!!! hehehheheh
You boizzz are too much tonight...
Layne, I'm hip to yo stizzle, and pickin' up whatcha puttin' down!
Are you from/in the Bay area, or just down with Mac D.?
******
from early 80's to tha 90's and beyond, from Mac to Doc, still...
http://www.youtube.com/watch?v=_-afioLMcEc
I B the 510 from the day with THE MST...... Northside.. Alston Way in the day...
Mn Nice.. Ya.. I suppose.. Until you have been there... Then I know you would be standing... Your packet sayz so...
Peace Lil-sister.. I will run point when it comes down
I used to live down in North Beach, at the end of Columbus, best bread in the world, or at least the world that I've been, on Leavenworth between Beach and Jefferson, forgot the name of the place... man I miss that city...
Who woudda have ever thought until 046 became the way...
Alston 1700 block.. Ashley... Ya .. I know... Then the hills... Until I became a black sheep... Then the 089...; Nor by Nor West... hehe MnNice... We're still here and are so are you... peace... lilun
Remember... As they say in the city... C.R.E.A.M. hehehehe
You're doing alot of things right D.O.D. Just might know it yet.
Speaking of socialism... T - 30 till PPT comes on to save the day...
I want to go back 5 years, play NINJA, and buy up 5 or 10 houses that I can't possibly afford, so I can pick which one to live in at a socialized rent rate today.
Ironically, it is easy to screw people who actually work, because they have to be at work when they would otherwise be marching with pitchforks...
If anyone find's Galt's Gulch, please contact me privately.
You don't find Galt's Gulch, Galt finds you.
You don't find Galt's Gulch, Galt finds you.
Wouldn't that be nice? :D
I'm going for the under.
Costa Rica. I live there...or do I mean "here". I reckon it's as close as you can get!
I am NOT a real estate agent but I would be happy to share info with you. e mail me rosfreed@yahoo.com
Can't take down a population culled by survival of the fittest. This way the strength and prudence of the few are so diminished by the many weak, that once sufficient time lapses; the whole system just falls over.
No need to conquer, just inbreed the weak, exhaust the solvent.
Does anyone even care anymore?
Does anyone even care anymore?
It is the money honey's 45th b-day today. looks like she celebrated with some really shitty tiger highlights (was she going for suburban cougar?) and some really good botox.
Suburban? Doesn't she live in Manhattan??
She does not know Libby. That's for sure
Socialism starts at the top.
WTF!!!! Why wouldn't banks go for it and drop the payments now for every unemployed, at-risk homeowner? For that short-term payment drop, the bank now gets to turn a toxic mortgage into a treasury, no?
Or am I not getting it?
When they say it's covered I think they mean where they have already agreed to backstop loans. But what do I know? This is all changing constantly and no one gets the real data on losses backstopped by the government anyway!
I'm in Canada. Why you guys haven't blockaded every road into DC is beyond me.
American Idol is still on and McDonalds is still open. The riots will start when those go dark. Or when a case of beer priced in dollars goes above $50.
Or when a case of beer is priced at any price in Ameros.
I know this is lame...BOY DO I NEED SOME THICK GORILLA TAPE> STAT.
There was a time that I thought Sheila was okay. She stood up to Paulson and Geithner on a number of points. But this is over the top. She is contributing to the social economic policy. She is making substandard loans. This type of thing is happening at fannie and freddie with 125% ltv refis to troubled borrowers. FHA/Ginnie is making 96%ltv loans.
They are all going nuts with this policy. It will have a beneficial impact in the short term. But unless we get some very big inflation numbers this is all going to explode.
There will be no housing inflation for the next three years. This stuff is all going into default in less than 18 months.
ditto
tritto
?
quatto...
Add mine.
Quitiro? Sorry to be the weak link but this brother is on the real.
The really stupid thing about this Bruce it is leads to moral hazard. I swear to God I am seeing it already in delinquency numbers - people are seeing that other people are getting a deal by not paying their mortgage, so they stop paying. The delinquency inventory is feeding on itself.
And it makes good sense - stop paying your mortgage, live rent free for two years+. That is an enormous windfall for most people. It's like moving back in with your parents, but not.
For that reason I expect prime mortgages at Fannie and Freddie to ultimately hit 20% loss rates for 2004 - 2008 vintages combined. The housing market is going to be a mess for years. We won't get real, unsubsidized price appreciation until 2012 at least. Imagine what that will do, when all the sheeple waiting for the housing market rebound realize it won't come?
What's worse, once the builders think there is any sign of stabilization, they will start adding to inventory. What a disaster this is going to be.
Every incentive coming out of Washington punishes the decent, responsible citizens and rewards the greedy, irresponsible, criminal and generally clueless. The motto of this BHO Administration should read:
'Be an irresponsible criminal asshole because it's all on us!'
The sad part is who pays for 'us'.
Not just the BHO administration. Every administration. It matters not the party. When it comes to finance, the song remains the same. Who put Fannie, Freddie, Citi, WFC, BA, JPM, GS, MS, PNC, BBT and the rest on the dole? Who decided to take MBS, CMBS and other trash a 1:1 swap at the fed for a freshly minted t-bill? It is all two sides of the same Iridium coin.
Wake up and shun the blue pill my associate.
I am no fan of GW Bush, and will never forget the way he handled Katrina. There have been Presidents in the last 60 years that had principles, and I live in a state where a very honorable Governor was elected to two terms.
Remember what happened to Bobby Kennedy when he tried to stand up to the mob. We need someone equally courageous to stand up to the banksters and political corruption, and hope he/she does not meet the same fate.
I was in Oakland the night the news of Bobby came on... Now I am in Memphis. Imagine that.
The fact of the matter is that this is what ZH is. You know it, I know it and soon it will just be. Do what you do and it just will be. Trust and know.
Well spoken Bruce (as always).
I am genuinely not trying to be a dick on this, but isn't FHA 96.5? I think they only require 3.5 down, but I could be wrong. I only say this because I think FHA will implode, a huge percentage of the borrowers are beating the down payment with the tax credit up to 8k, and virtually every scumbag mortgage broker/mortgage banker who wrote through american home loans, new century, wamu, indy, etc. ad infinitum, has found their way to FHA.
DH - Don't worry. It is being taken care of
i trust being taken care of means a gs/house of dimon lead IPO of FHA....I'm in for a few thousand shares. that baby would surely rocket and find its way into a robottrader column!
{;-]
you know its gotten to the point that there are no more mortgages that FHA doesn't have a hand in. I refid in May to move out of a 5 year int-only and into a conforming because I figured it was a good idea to get a sub 5% rate and my payment would only go up a few hundred bucks and I would be putting more towards principle, etc. For the amount of time I planned to be in the house it was a good idea and I still had 65% ltv according the recent appraisal. I was kind of amazed that the only loan I could get was via FHA.
Welcome to the machine....
Keep on workin' it,,, You will be reflected as a patriot on the ledger. Just don't ask them to call Heath.
I'm all for this plan. I'm all against bailouts but the second the Fed and gov't committed trillions to the Golman Sachs, Bank of Americas of the world (essentially corporate wellfare) is the second they should open up wellfare to everyone. If they could manage to claw back every penny they handed out to them and the Cerberus's, GMs and Chrylsers, than they could turn that spigot off. Besides, while you villify those who cannot make their payments, characterizing them as being too greedy and owning too much house, there are some who simply aren't working and won't be able to afford any house in a while. I am coming off making $120,000/year and have a $115,000 mortgage. Is this too much house for my salary? I think not. Yet I may face the prospect one day that I can't afford it. Further, why don't you include in that category of "responsible Americans" the 800,000 Goldman employees on tap to clear $800,000 salary off the taxpayer's back.
please explain how you conclude that "Goldman employees ... clear $800,000 salary off the taxpayer's back"
Goldman Sachs makes money by selling advice (M&A), providing debt and equity capital (M&A, corp fin), client trading, proprietary trading and asset management. In what way are these activities "off the taxpayer's back"?
you're kidding, right? other than the M&A piece, they need capital to conduct those operations. where do you think the capital came from?
GS would have collapsed if they had not been permitted to become a bank holding company.
You have a 10K from me on this
Goldman makes the bulk of their money from their own trade account. To make money on trades money must be put in play -- our taxpayer money of which 70% of the profits will be redistributed to a tiny few Goldman employees. When everyone talks about redistribution of wealth let's remember that we have been suffering this sort of redistribution of wealth (socialized losses, privatized gains) for many years. I can't stand these jackasses that discuss the moral hazard of redistribution of wealth when it goes from the rich to the poor but always seem to overlook the redistribution that is constantly flowing from the poor to the rich.
I add that GS still has a significant sum (forgot the amount) of bonds it floated for its (prop desk) general business purposes that are backstopped by the FDIC alphabet soup program, the letters of which I forgot but is alleged to be one of the training wheels to be removed in the near future.
i don't usually write run on sentences....
(excuse me - since we're being a bit racist)
how about everybody avoiding the racist thing and we will stick to facts, figures, and opinions based on those. I'd like to think the people who read and/or comment in ZH are way too smart to incorporate racism, sexism, etc into the debates. thanks.
I join with you, MnNice and others.... Now...
Can I offer you a blunt my brother? After all, it's Friday
thx layne....in my younger college days, let's just say that i made john belushi look like an amateur lol! that said, i stopped all of that stuff including alcohol years ago.
{;-]
It is what is is.. no need 'splain...
http://www.youtube.com/watch?v=9FtgbIQyWxk
Nice link for a Friday afternoon to transition into the weekend... thanks...
Anytime Mn Nice. You said you had my back. I will run run point for you Trust me...
Take care Lilun. I trust you.
:-)
Peace & prosperity be yours
So would I like to think that the folks at ZH are smarter than that but when I hear someone slip "the fat black chick" into the thread I get a bit pissed off. Sorry, I know two wrongs don't make a right.
But my overall point with this whole thread is that even amongst smart, educated people it is too easy for them to frame the little guy with such descriptions as the "the fat black chick" or being greedy or raising the moral hazard but as soon as we decided to bail out the corporations you can throw the moral hazard argument out the window. The country can't all of sudden grow wisdom then when it comes to bailing out the little guy. I don't care what the argument is.
Goldman would not even exist today if it were not for the American taxpayer bailing them out last fall:
http://market-ticker.org/archives/1235-Obscene-Profit-You-Stole-It.html
in other words, let's milk the middle class aka paying taxes sheople a little moooooooorrrrrrrrrrreeeeeeeee.
coz, sheople are as sheople do.
This isn't socialism... this is a government attempt to put a smiley face on a growing disaster... squatters and defaulters telling the system to fuck off. The government will lie, cheat, and steal from everyone left standing to create the appearance that everything is under control.
We had better get the pain over with before it goes from mass default to mass arson.
You nailed it there! Soon, people are going to realize they can out of under water laons by lighting a macth...
Someone tried it on my block, after two failed auctions...
Hey somehow Sheila thinks it is a win-win for the homeowner, the FDIC and the lender if everyone stops worrying about the homeowner paying! Please explain what math she is using.
The moral hazard risk is at an all time high. Why would any American with little equity in his house pay the mortgage?
They shouldn't. I see it every day, people going literally years delinquent on their mortgage. if you have no skin in the game, stop paying and stay in place. do the math, the loss of credit score is overwhelmed by the value of saving money by not paying a mortgage.
Awesome.
Now let me reach for my (nearly depleated) tube of KY...
it really pisses me off that I played by the rules and have to subsidze my asshole neighbor who hasnt made a payment in 12 months, and who also makes more money than I do, becuase he cash-out refi'd a half dozen times to buy a motor home, a porsche, and a cabin at big bear.
I never touched my equity because I didn't consider it real money until the house was sold. Its like tha fat black chick on TV after Obama won saying she wouldnt have to worry about paying her bills. Bitch was right.
When is someone going to tell the banks to go choke on a dick already?
"I'm not gonna haf to worry bout puttin gas in my car. I'm not gonna haf to worry about my mortgage. Cause ya know if I hep him... he's gonna hep me"
Behold! The voice of Obamanation.
Well fellow sucker, I hear you - but that's what we get for "playing by the rules".
And I laughed when I saw that cliff, now I see the joke's on me!
No matter, lost, ignorant or stupid, the joke usually is on us. Welcome to the club!
This is your version of moral hazard. My version of moral hazard is that (excuse me - since we're being a bit racist) is the f@cking jew at Goldman who was largely responsible for the financial collapse is now being rewarded by keeping his/her job and with an extra kicker will have record compensation this year. You want to talk about moral hazard now it's a bit too late. Should have been talking about that a year ago.
i didnt see anything I said as being racist. she was a fat black chick, its a statement of fact. I don't play the "hyphenated-American" game.
Let me see if can get this straight:
1) If you are a loss share partner with the FDIC after acquiring a failed bank, you are totally covered in the event that property is foreclosed.
2) The FDIC will NOT cover any losses on efforts of the loss share partner to reduce mortgage payments in the event someone is unemployed or underemployed-- albeit during a "forebearance" period.
3) Yet the FDIC is recommending/encouraging #2, while the bank has every incentive to follow through on #1, since that's the path to guaranteed limted losses.
#2 will save the FDIC money... but why would a loss partner bank care one iota about that? Especially when their losses are already fully covered.
Yes, indeed... socialism does start at the top.
Global Fascism - Trilateral Style
http://letthemfail.us
The more things change, the more they stay the same. Welcome to the "weekend" my associates. The song remains the same.
Gun the close.....close at 9650.
>> The FDIC's recommendation: "to reduce the loan payment to an affordable level for at least six months." <<
As long as the FDIC/gov't keeps thinking this is a monthly CASH-FLOW problem and not an EQUITY problem, we'll only get deeper into this....
Sorry, lowering a payment by $200/mo won't do much when you're $300k underwater...
Exactly. We had an asset bubble, and it has burst.
Playing the crisis of liquidity vs confidence game... still
"...that will give them an opportunity to regain full employment and avoid an unnecessary foreclosure."
Sounds like they expect the unemployment situation to be short-lived. Common sense says otherwise.
Isn't this just another attempt to "kick the can" down the road? I see no benefit other than to postpone the inevitable.
I bought a house I could afford back in 1990...with no plans to "upgrade" or live beyond my means. It's paid for and I'm happy about that. I take great exception now having the rules changed for those who bought more than they could (should have) qualified for/pay for.
Not socialism, stupidity. They're trying to do good by capitalism but have long since mistaken bending over for Big Money for pro-capitalistic. Pro-capitalist, da, pro-capitistic, nyet.
Soon these gov't folks will be singing Prosti to us.
It's not just people who bought to big of a house for their income. Lots of people have been laid off and, in case you haven't looked for work lately, there aren't many jobs to be found.
I guess you didn't hear, UE is so yesterday...We have collectively decided that we don't like talking about people not having enough money to spend on anything they want or to pay for their house (that McMansion or just the regular house with the normal mortgage they've had for 10 years)...it's all too depressing. So now, we just say those are "lagging" indicators the economy is now going to grow by OSMOSIS! I mean we have a million more jobs than we would have had without spending the trillion dollars on stimulus...doesn't that make you feel better?
No so much for me, but I hear it's working really well out on main street.
What line in the federal budget does this fall under? Oh right, this is an off-balance sheet guarantee, not recorded in the budget. Wow, and not even Congressional sign-off!!
So did Key Bank buy the assets of Amtrust? Or do some other sort of take it for free on bank failure friday deal? Just wondering as I just got back from a Key bank ATM where at 4:21pm I was provided with an Amtrust receipt with the KeyBank Logo on it. I guess if they didn't go down today that ought to be the final nail in the coffin for them...
i'll go with over 4 this week on bank failures
regarding the press release above, Fuck the FDIC and the banks
thank you and have a nice weekend
Tennessee -10. there's some capitalism for you
Currently the FDIC is a quasi government agency and the BIF (Bank Insurance Fund) is funded by premiums paid by banks on their deposits, not taxpayer funds. Until the FDIC goes to Treasury for a bailout - which is probably forthcoming as failures continue - there is no taxpayer money being used for these measures - YET.
I'll go with Over 5 banks failed tonight.
I think a total of 6 will fail tonight when it is all over.
FDIC is irrevelant to us now. We have moved everything over to the friendly Credit Union under NCUA. Absolutely wonderful, fee-free and interest rates 5 to 7% for a variety of services.
YAY.
Let the big boys fail and be done with it.
I feel like I am being gummed to death by the FDIC. They only encouraged that the modifications be made. There is no demand. Who cares about encouragement? Why make a release on something so inane?
There must be some teeth in the FDIC.
Great analogy... what does "encouraging its loss-share partners"actually mean? Sounds like the FDIC is trying to reason with them like a small child... I would assume that if the "loss-share partners" thought this plan would benefit them in the first place... they would have thought of it themselves and already done it. You can't even tell who the villian is in this comedy sketch... the FDIC or the Banks or the Delinquent Homeowners... will someone please get me a program from the usher.
Corus is done. Finnished. Ultra well done...
http://www.calculatedriskblog.com/
Corus - Chicago's soon to be taxpayer funded Miami condo lender - going down later today. MB Financial gets their local branches, according to Crain's Chicago.
Atlas Shrugged come to life again.... soon, we will all pay according to our ability, and be paid according to our NEED
Hey, I just refi-ed my mortgage to 125% of valuation - and now I can get
my payments modified too. Or maybe I just won't bother making any payments.
Wow, isn't socialism great.
Perfect... go and put a bunch of useless stuff on your credit card like new furniture for the house... then go out and buy a new car... and maybe an RV... then don't make any payments on anything ever... then you will fit in with the new paradigm of our country.
The FDIC is funded by banks or in essence the owners of banks. This site does a disservice by claiming that the taxpayers are funding the bank closures and payouts from the funds.
Yea I thought the FDIC was funded by the member banks and NOT taxpayers? The FDIC has an emergency line of credit from treasury in case the fund goes dry, which it hasn't yet.
I hear a lot of whiney trust fund traders in this thread complaining that the govt is trying to help the little guy just a bit. Distorting the truth to make an ideologically and morally WRONG argument is laughable.
A lot of people have lost their jobs and find themselves in hard straights. If you think its their fault for not bootstrapping themselves into the upper middle class and above levels of prosperity (where surely most members here reside) then you are a fool and you deserve to have your wealth taken away by a socialist. Not that it will ever happen though.