U.S. Federal Regulators Close Four Failed Banks

[impulse]

Now, now, no need for the blame game as there has been more than enough wrong-doing on both sides of the aisle for the last 40 years. You can tie the beginning of the fiasco know as US monetary policy to when Tricky Dick took the US off the gold standard in order to print greenbacks to fund the Vietnam debacle.

Kicking the can down the road and taking backhanders from lobbyists is the new norm inside the beltway in DC.

Obama's mistake is continuing to blame Bush after 4 years in office (much like you) with zero progress in the economy or jobs arena. The Dems haven't even attempted to pass a budget in that time. Hard to blame your predecessor when you're sitting on your thumbs and doing F-all yourself, init?

I can't disagree with your points- and I'm neither a fan of Obama nor the Demicans or Republicrats- plenty of blame to go around..

The last time our economy was in this bad shape, it was down for 10 years and it took a World War to pull out. It seems a little unrealistic to expect a 4 year solution this time around.

[koheesti]

Now, now, no need for the blame game as there has been more than enough wrong-doing on both sides of the aisle for the last 40 years. You can tie the beginning of the fiasco know as US monetary policy to when Tricky Dick took the US off the gold standard in order to print greenbacks to fund the Vietnam debacle.

Kicking the can down the road and taking backhanders from lobbyists is the new norm inside the beltway in DC.

Obama's mistake is continuing to blame Bush after 4 years in office (much like you) with zero progress in the economy or jobs arena. The Dems haven't even attempted to pass a budget in that time. Hard to blame your predecessor when you're sitting on your thumbs and doing F-all yourself, init?

I can't disagree with your points- and I'm neither a fan of Obama nor the Demicans or Republicrats- plenty of blame to go around..

The last time our economy was in this bad shape, it was down for 10 years and it took a World War to pull out. It seems a little unrealistic to expect a 4 year solution this time around.

But it is not unrealistic in the slightest to expect noticeable progress after 4 years and more than a trillion $ in stimulus spending. Instead, all we get are excuses and finger pointing.

[Ulysses G.]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

Yeah, it's sad how long it takes to stop a train set in motion by your predecessor at 100 miles an hour down a hill toward disaster.

The housing crisis - which started the "train wreck" - was the result of the policies of Bill Clinton, but Obama promised to fix it all and has failed dismally. It is time to stop blaming everyone else.

[Colin Yai]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

Yeah, it's sad how long it takes to stop a train set in motion by your predecessor at 100 miles an hour down a hill toward disaster.

The housing crisis - which started the "train wreck" - was the result of the policies of Bill Clinton, but Obama promised to fix it all and has failed dismally. It is time to stop blaming everyone else.

Yeah he coined the phrase ,"Time for a change" and "yes we can" he promised much but failed to deliver .

[Pakboong]

I guess these banks were not "too big to fail." This a big step toward socialism in America and the nationalization of independent banks. It is time we played Taps for the America we once knew. The future is no longer ours.

Wow from the collapse of 4 tiny banks (with a grand total of 21 branches) out of over 8,000 banks nationwide (with approximately 100,000 branches) to the socialistic collapse of the world's richest economy. Time for another cup of java me thinks!

Quite. So many Chicken Littles it's not funny. Of which, I would wager no one on TV would even be remotely affected by the bank closings. They would not have even known about them had this "news" article not been printed, yet it's the end of the world as we know it. Please.

I don't know to which chicken littles you are referring. I have had one of my banks failed and taken over by the FDIC within the last 3 years. A bit inconvenient but no big deal really. I hope you don't mind having pitched in to insure my money in that bank was safe.

Edited June 12, 2012 by Pakboong

[chuckd]

I guess these banks were not "too big to fail." This a big step toward socialism in America and the nationalization of independent banks. It is time we played Taps for the America we once knew. The future is no longer ours.

Wow from the collapse of 4 tiny banks (with a grand total of 21 branches) out of over 8,000 banks nationwide (with approximately 100,000 branches) to the socialistic collapse of the world's richest economy. Time for another cup of java me thinks!

Quite. So many Chicken Littles it's not funny. Of which, I would wager no one on TV would even be remotely affected by the bank closings. They would not have even known about them had this "news" article not been printed, yet it's the end of the world as we know it. Please.

I don't know to which chicken littles you are referring. I have had one of my banks failed and taken over by the FDIC within the last 3 years. A bit inconvenient but no big deal really. I hope you don't mind having pitched in to insure my money in that bank was safe.

Nobody pitches in but the member banks. The FDIC is paid for by the banks.

From Wikipedia:

"The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation operating as an independent agency created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, up to $250,000 per depositor per bank as of January 2012. As of November 18, 2010, the FDIC insured deposits at 7,723 institutions.[2]"

...and...

" The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities."

http://en.wikipedia....nce_Corporation

[flying]

Nobody pitches in but the member banks. The FDIC is paid for by the banks.

Yes when things run right that is true.

When they do not like the last 3 years then the FDIC is allowed to borrow from

the Treasury ( up to 100 Billion & there was a bill to allow 500 Billion )

I remember back in 2009 the FDIC assets exceeded liabilities by about 10 billion

Which was something like less than half of 1% of insured deposits

Remember when they suddenly raised the FDIC from 100k to 250k?

There was a reason for that.

They knew they could not pay even the 100k if need be so they sweetened the promise to

keep bank runs at bay.

Wish we could say we are in the clear but in reality it has not even gotten rolling yet.

Edited June 12, 2012 by flying

[Exsexyman]

as a matter of interest what do American members think of this video? EDIT, maybe its time to put Country first and individual politics second , just a thought or is this too much to ask ?

Yes all true & I have often said two wings of basically the same corrupt bird.

Americans are given the illusion of choice all the while never realizing both wings

are tied firmly to the same strings.

Anyone who does speak up in favor of reality is quickly ignored or worse...

Sadly I for one think it is too late & have acted accordingly

Two wings of the same bird? Is that the same as two cheeks of the same ass, which would surely be more appropriate for this topic?

I would be inclined to think it depends on your ethnicity and/or purpose for posting. The thread is rather innocous unless one is trying to make a point not included in the OP.

It depends on my ethnicity? I'm afraid you've really lost me there.

[kerryk]

Nobody pitches in but the member banks. The FDIC is paid for by the banks.

Yes when things run right that is true.

When they do not like the last 3 years then the FDIC is allowed to borrow from

the Treasury ( up to 100 Billion & there was a bill to allow 500 Billion )

I remember back in 2009 the FDIC assets exceeded liabilities by about 10 billion

Which was something like less than half of 1% of insured deposits

Remember when they suddenly raised the FDIC from 100k to 250k?

There was a reason for that.

They knew they could not pay even the 100k if need be so they sweetened the promise to

keep bank runs at bay.

Wish we could say we are in the clear but in reality it has not even gotten rolling yet.

Absolute nonsense. Take a short course on the working of the FDIC.

[flying]

Absolute nonsense. Take a short course on the working of the FDIC.

If there is something you disagree with then state it.

Otherwise take the pompous attitude & stick it

[meand]

"Too big to fail" has pretty much been translated at this point to "Too big of an ego to fail now, so we'll settle on having the biggest failure in human history and succumb to all our greatest fears later ".

[kerryk]

Absolute nonsense. Take a short course on the working of the FDIC.

If there is something you disagree with then state it.

Otherwise take the pompous attitude & stick it

You wrote, “When they do not like the last 3 years then the FDIC is allowed to borrow from the Treasury ( up to 100 Billion & there was a bill to allow 500 Billion )

I remember back in 2009 the FDIC assets exceeded liabilities by about 10 billion

Which was something like less than half of 1% of insured deposits

Remember when they suddenly raised the FDIC from 100k to 250k?

There was a reason for that.

They knew they could not pay even the 100k if need be so they sweetened the promise to

keep bank runs at bay.”

I don't agree with any of the above. Get someone else to explain it to you. Maybe someone who can consolidate the errors better than I can. I don't want to start an argument about the function of the FDIC with a person who does not already know what the FDIC does. Maybe someone who went to college in the US recently. The thread is about the FDIC closing 4 small banks. Not the history and function of the FDIC. If you don't know what the FDIC does it is probably a good idea to stay on topic about the four banks.

[Scott]

An inflammatory post has been deleted.

[chuckd]

Nobody pitches in but the member banks. The FDIC is paid for by the banks.

Yes when things run right that is true.

When they do not like the last 3 years then the FDIC is allowed to borrow from

the Treasury ( up to 100 Billion & there was a bill to allow 500 Billion )

I remember back in 2009 the FDIC assets exceeded liabilities by about 10 billion

Which was something like less than half of 1% of insured deposits

Remember when they suddenly raised the FDIC from 100k to 250k?

There was a reason for that.

They knew they could not pay even the 100k if need be so they sweetened the promise to

keep bank runs at bay.

Wish we could say we are in the clear but in reality it has not even gotten rolling yet.

Having the ability to borrow from the Treasury and actually borrowing the funds are two entirely different functions.

From the FDIC's web site, this explanation is offered:

"If needed, the FDIC can quickly borrow money from the U.S. Treasury. The FDIC has immediate access to a $100 billion line of credit

at the Treasury that, under federal law, can be expanded to $500 billion. The FDIC also has additional authority to borrow money from the Treasury for various other purposes. However, Chairman Bair has stressed that the FDIC expects to continue to collect premiums from the banking industry to pay for banking industry problems — without borrowing from U.S. taxpayers."

http://www.fdic.gov/...09/Fall09BW.pdf

As far as I can determine, the last time the FDIC borrowed funds from the Treasury was during the Savings and Loan scandal in the 1990s. Those funds were repaid and there has been no need for further borrowing since then.

As a personal note, many years ago on a dark and distant planet, I was asked by the FDIC to be seconded from the large bank I was working for to take over and run a small bank that was in trouble. My bank agreed so I took over the small bank for a few months, helped clean up their loan portfolio, reorganized some of their personnel and when the job was done I returned to my day job at the larger bank. Having worked with the FDIC I was impressed with their professionalism and dedication to preserving the smaller bank in the much smaller community with, primarily, only management and board restructuring.

Things have possibly changed from 40 years ago but the FDIC is still a top ranked organization IMHO.

The FDIC is, perhaps, the single best managed government sponsored organizations. Primarily because it is run by bankers and not red tape government bureaucrats.

[flying]

Having the ability to borrow from the Treasury and actually borrowing the funds are two entirely different functions.

As far as I can determine, the last time the FDIC borrowed funds from the Treasury was during the Savings and Loan scandal in the 1990s. Those funds were repaid and there has been no need for further borrowing since then.

The FDIC is, perhaps, the single best managed government sponsored organizations. Primarily because it is run by bankers and not red tape government bureaucrats.

Yes I agree & is basically what I said...They have the ability if needed to tap the Treasury

I only mentioned it in response to your saying....

Nobody pitches in but the member banks. The FDIC is paid for by the banks.

After that things went a bit OT not due to anything you said....

Yes you are also correct about the time in the 90's being repaid.

I have not kept up with recent events & whether any of the 100k was borrowed or not.

I am no longer affected so do not keep track.

I did read with interest back in 2009 many articles written by Sheila Bair & found them interesting & frank.

As far as being efficient because being run by bankers......well that would be different than my opinion

due to the bankers track record in recent years...But entirely another subject.

[Pakboong]

I should let this topic die its natural death but there are a couple of matters that change everything that has been mentioned.

The Dodd-Frank Deposit Insurance Provision is effective from December 31, 2010 through December 31, 2012.

This provision provided that non interest bearing accounts are insured to their full amount through 31 December of this year. There are individual depositors who have enough money in banks to clean out the FDIC by themselves. The last time I checked, the FDIC had $6 billion in cash reserves. Nobody is going to tell you that the FDIC is underfunded in its normal operating mode.

Edited June 14, 2012 by Pakboong