Post by psychecc on Aug 26, 2008 15:09:27 GMT -6
Sheila Bair tried to look calm during the press conference, but there's no way the FDIC will have enough to cover all the losses, even with the plan to increase bank premiums to the fund. This will be another bailout with taxpayer dollars. As with Fannie and Freddie, they're just trying give us time to get used to the idea.
It isn't just that all the regulators and congress (who has oversight responsibility) were asleep at the switch during all this "financial innovation" that bugs me. It's that they knew darn well it was happening, it was risky, and they did NOTHING because they didn't want to end the party that was the most recent bubble.
When will they admit that we need to actually make something and sell it to support this economy??? Pushing paper and inflating asset values creates nothing of value. No more creative destruction! Back to the basics of making a good product and selling it at a fair price, please!
FDIC: Troubled Banks Rise To 117, Most in Five Years
By Reuters:The Associated Press
| 26 Aug 2008 | 03:00 PM ET
The number of problem banks on a regulatory watch list increased to 117 by the end of the second quarter from 90 at the end of the first quarter, the Federal Deposit Insurance Corp said.
The combined assets of the problem banks increased to $78 billion from $26 billion, the agency said.
The housing slump and worsening economic conditions forced U.S. banks to set aside $50.2 billion in loan loss provisions during the second quarter, the FDIC said in its quarterly industry update.
That figure is more than four times the $11.4 billion that the industry set aside in the second quarter last year.
"By any yardstick, it was another rough quarter for bank earnings, but the results were not unexpected...," FDIC Chairman Sheila Bair said in a statement.
Nine banks have failed so far this year, including IndyMac Bancorp Inc....
Bair also said the agency will consider a plan in early October to replenish its Deposit Insurance Fund, which had a large drop due to IndyMac and other bank failures.
The fund, which is used to cover insured deposits, fell to $45.2 billion at the end of the second quarter from $52.8 billion at the end of the first quarter.
....
Earnings at U.S. banks and thrifts were $5 billion in the second quarter, versus $36.8 billion in the year-ago period, the agency said.
With the exception of the fourth quarter of last year, second-quarter earnings in 2008 were the lowest for the industry since the fourth quarter of 1991.
www.cnbc.com/id/26408785/
It isn't just that all the regulators and congress (who has oversight responsibility) were asleep at the switch during all this "financial innovation" that bugs me. It's that they knew darn well it was happening, it was risky, and they did NOTHING because they didn't want to end the party that was the most recent bubble.
When will they admit that we need to actually make something and sell it to support this economy??? Pushing paper and inflating asset values creates nothing of value. No more creative destruction! Back to the basics of making a good product and selling it at a fair price, please!
FDIC: Troubled Banks Rise To 117, Most in Five Years
By Reuters:The Associated Press
| 26 Aug 2008 | 03:00 PM ET
The number of problem banks on a regulatory watch list increased to 117 by the end of the second quarter from 90 at the end of the first quarter, the Federal Deposit Insurance Corp said.
The combined assets of the problem banks increased to $78 billion from $26 billion, the agency said.
The housing slump and worsening economic conditions forced U.S. banks to set aside $50.2 billion in loan loss provisions during the second quarter, the FDIC said in its quarterly industry update.
That figure is more than four times the $11.4 billion that the industry set aside in the second quarter last year.
"By any yardstick, it was another rough quarter for bank earnings, but the results were not unexpected...," FDIC Chairman Sheila Bair said in a statement.
Nine banks have failed so far this year, including IndyMac Bancorp Inc....
Bair also said the agency will consider a plan in early October to replenish its Deposit Insurance Fund, which had a large drop due to IndyMac and other bank failures.
The fund, which is used to cover insured deposits, fell to $45.2 billion at the end of the second quarter from $52.8 billion at the end of the first quarter.
....
Earnings at U.S. banks and thrifts were $5 billion in the second quarter, versus $36.8 billion in the year-ago period, the agency said.
With the exception of the fourth quarter of last year, second-quarter earnings in 2008 were the lowest for the industry since the fourth quarter of 1991.
www.cnbc.com/id/26408785/