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Tag(s): Bailout; Bank Failure; Bankruptcy; Banks; Crisis
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September 25, 2008 at 20:03:46

Headlined on 9/25/08:
FDIC Bailout Up Next

by Gene Cappa Page 1 of 1 page(s)

www.opednews.com

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Federal Deposit Insurance Corporation, with $45.2 billion on hand as of June 30, will fall far short of the $200 billion or more needed to pay claims by the end of 2009.

AMERICANS have gotten used to the idea that bank failures were as rare as a category five hurricane. No banks went bust in 2005 or 2006. Seven collapsed in 2007 as the credit crisis began to exact a toll. So far in 2008, 12 more, with total assets of $42 billion, have fallen -- that's the worst wave of bank failures since 1992.

INDY MAC, which had $32 billion in assets when it went into receivership, is the most expensive bank failure the FDIC has ever covered. And that record may not stand for long.

BY THE END OF 2009, about 100 U.S. banks with collective assets of more than $800 billion will fail, predicts Christopher Whalen, managing director of Institutional Risk Analytics, a Torrance, California-based firm that sells its analysis of FDIC data to investors.

IT WON'T TAKE MANY MORE FAILURES before the FDIC itself runs out of money. The agency had $45.2 billion in its coffers as of June 30, far short of the $200 billion Whalen says it will need to pay claims by the end of next year. The U.S. Treasury will almost certainly come to the rescue, "FDIC May Need $150 Billion Bailout as Local Bank Failures Mount", by David Evans, Bloomberg News, Link, CLICK HERE http://www.truthout.org/092508A#1

Take action -- click here to contact your local newspaper or congress people:
LET Private Banks Cover Their Own Losses

Click here to see the most recent messages sent to congressional reps and local newspapers

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3 comments

Margaret Bassett is an 86-year old, currently living in senior housing, with a lifelong interest in political conumbrums. She hopes to hold out for one more presidential election. Bachelors from State University of Iowa (1944) and Masters from Roosevelt University (1975) help to unravel important requirements for modern communication. Early introduction to computer science (1966) trumps them. It's payback time. She's been "entitled" so long she hopes to find some good coming off the keyboa...

to see more of bio, click on member name
Margaret BassettMargaret Bassett is an 86-year old, currently living in senior housing, with a lifelong interest in political conumbrums. She hopes to hold out for one more presidential election. Bachelors from State University of Iowa (1944) and Masters from Roosevelt University (1975) help to unravel important requirements for modern communication. Early introduction to computer science (1966) trumps them. It's payback time. She's been "entitled" so long she hopes to find some good coming off the keyboa...

to see more of bio, click on member name

You hit the nail on the head

Law requires FDIC to carry a balance. FDIC is supposed to get its funds from member bank assessments. Remaining banks won't have enough capital for increased assessments. Uncle Sam can anti-up or depositors are SOL. Damned if they do, damned if they don't--it's still the taxpayers and depositors bum deal.

by Margaret Bassett (31 articles, 1967 quicklinks, 30 diaries, 1282 comments) on Friday, September 26, 2008 at 1:40:39 PM

A United States Marine Corps Viet Nam Era Veteran trying to do what I can and expecting Congress, the Executive Branch, and the Judicial Branch, to do what they can to keep the nation strong and free by remaining true to the Constitution first of all.
Gene CappaA United States Marine Corps Viet Nam Era Veteran trying to do what I can and expecting Congress, the Executive Branch, and the Judicial Branch, to do what they can to keep the nation strong and free by remaining true to the Constitution first of all.

Republicans must resuscitate the government

THESE Republican conservatives, came into office in mass in '01 determined to shrink the government to the point where they could strangle it permanently and "DROWN IT IN A BATH TUB".

THEIR rallying cry was "privatization", and they were determined to "privitize" the entire government, all government services, and all government revenues into their pockets.

THEY started by giving lavish and excessive tax cuts to our wealthy elite, then raising the federal debt ceiling, then borrowing more monies, instead of actually raising revenues, a traditional government function, to go on a wild stupendous spending & borrowing spree and literally bankrupting the Treasury, in the red for trillions.

NOW that their "bubble" comes tumbling down with the subprime meltdown that they brought about with deregulation, combined with a plummeting dollar, and with the economy quickly heading south and their debts piled up, these privateers now come back on their knees pleading like a spoiled child to the government to cough up the cash to compensate them for their wayward ways of the past.

BEFORE the government can help these Republicans privateers, they will have to kneel down next to the bath tub and give the government some mouth to mouth RESUSCITATION, if its not already too late!

by Gene Cappa (35 articles, 0 quicklinks, 58 diaries, 258 comments) on Friday, September 26, 2008 at 2:16:14 PM

Mark A. Adams earned his BA in business administration with a major in finance and a minor in economics at the University of South Florida. He earned his law degree and his master of business administration at the University of Florida where he also worked as a teaching assistant in the Economics Department.

Mark practiced law in Florida. In 2006, Mark represented Max Linn, the Reform Party candidate for Governor of Florida, in successful lawsuits brought against the media to re...

to see more of bio, click on member name
Mark AdamsMark A. Adams earned his BA in business administration with a major in finance and a minor in economics at the University of South Florida. He earned his law degree and his master of business administration at the University of Florida where he also worked as a teaching assistant in the Economics Department.

Mark practiced law in Florida. In 2006, Mark represented Max Linn, the Reform Party candidate for Governor of Florida, in successful lawsuits brought against the media to re...

to see more of bio, click on member name

They just want it all!!!

We need to take action before the Bush Neo-cons and their Democratic enablers trash our economy with their "bailout." See Wondering Why We Are Bailing Out Those Banks? Could it be FRAUD!?!?!

Could it be a case of the Bush Administration looking the other way while all kinds of scamming was going on? Let's see. Bush I is ruling during the Savings and Loan bail out, and Bush II is ruling when the banks need to be bailed out. Does anyone see a pattern here? Find out who caused this mess and learn a better way to get out of it.

This article contains links to the Miami Herald articles showing that (surprise, surprise) the Republicons looked the other way while widespread mortgage fraud went unchecked.

Please check it out, digg it, buzz it, reddit it, and pass it along to your friends. Also, use the link Help the Victims, Not the Scam Artists! to send a message to your members of Congress and your local newspaper telling them what you think about the latest Bush engineered crisis!

by Mark Adams (19 articles, 0 quicklinks, 0 diaries, 243 comments) on Friday, September 26, 2008 at 4:00:13 PM

3 comments

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