The headlines are all a buzz over this Wall Street Journal article, declaring bailed out banks may fail. These 98 banks have received $4.2 billion in TARP funds, a token amount in comparison to the Banksters.
In Q2 2010, the number of TARP recipient banks who would fail anyway was 86. That said, every Friday at business close we get more bank failures. The tally for 2010 alone being 157.
Calculated Risk runs the unofficial problem bank list, currently outlining 919 problem banks. Most of these of the list did not get TARP funds.
There are also reports of the FDIC selling failed banks assets to TARP recipient banks, for pennies on the dollar and holds large amounts of seized failed bank assets.
The FDIC closed on the sale of $279 million of assets from nine failed bank receiverships. The winning bidder of the asset pool was Cache Valley Bank, Logan, Utah, with a purchase price of 22.2% of the unpaid principal balance of $279 million. The failed bank assets will be placed into a newly formed limited liability company (LLC) with the FDIC retaining a 60% stake and the balance owned by Cache Valley Bank.
The dollar is surging today, and its because of a critical decision in Europe.
(Dow Jones)--The bailout of Germany's banking sector may swell the country's public debt rate to 90% of gross domestic product, Die Zeit weekly newspaper reports Wednesday.
Ryan Grimm @ Huffpo has what should be considered an unbelievable article about the Inspector General in charge of overseeing and auditing the Federal Reserve. However, given the bizarro financial world we are living in, unbelievable has lost its meaning. The look on Congressman Alan Grayson's face says it all.
Yesterday I put up an Instapopulist post regarding the national demonstrations which will be happening tomorrow. This effort is being organized and coordinated by a new grass roots organization called A New Way Forward.
Today, I want to emphasize the importance of showing up at these demonstrations, in light of the new article from Michael Hirsch of Newsweek. Here's the link to the story.
As Hirsch points out, the administration has received push back from some members of the Senate. And there are some slight indications that there is sentiment within the administration to institute modest to serious regulations. Yet, the NY Fed is currently holding meetings with WS insiders and their traditional regulators, to decide the type of regulation that would work best for them. In other words, regulation lite and no transparency to outside agencies.
I can't speak for all of the readers, but all of the commentators here at EP are frustrated and angry about the neverending string of bad plans enacted to deal with the financial crisis. Well, there is something we can do besides commisserate with each other.
Here is the link to this new grass roots organization, which has been formed in response to the non-sensical, repetitive bank bailouts. Demonstrations will be happening all across the country this Saturday, you may want to see where the nearest is to your location. My local organizer has asked that we bring cell phones and video cameras to capture our experience. The videos can be submitted to Bill Moyers who will be doing a montage of the events for his program. The organization is also planning on presenting its own montage and list of concerns and demands to Congress.
Once again, Joseph Stiglitz is offering his considerable opinion as to what needs to be done in tackling our financial crises. His current article at The Nation is both rational and sensible. Read it here and see how relatively simple his solution is. Of course, the bank lobby won't like it.
Bailing out banks can be very costly. Suddenly Britain has a public debt ratio comparable to Japan's, but without the trade surpluses and high savings rate.
The government's rescue of some of Britain's biggest banks will more than double the national debt at a stroke after government statisticians decided to classify Lloyds and Royal Bank of Scotland as public corporations. Their liabilities – up to £1.5tn – will be added to the taxpayer's balance sheet.
That could push the country's debt levels up to 150% of national income, from a three-decade high of 48% now. The public sector net debt has already been swollen by £90bn of Northern Rock liabilities and, as of yesterday, £50bn of Bradford & Bingley's liabilities. But the two latest additions, which the ONS estimates could total between £1tn and £1.5tn, would dwarf those.
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