Jesse's Café Américain Thu 2009-08-27 10:45 EDT

'New Deal for Wall Street' Programs Subsidizing Subprime Lenders

Jesse

Welfare for Wall Street is just another phase of the 'trickle down' approach that seems to be so popular with the financerati. If "Cash for Clunkers" had involved subsidized loans for cars administered by the banks it would have been touted as the greatest thing since sliced bread by the coporate media and mainstream infomercials, instead of being slammed on a daily basis as a troubled, pointless giveaway program.

Jesse's Café Américain; new deal; Programs Subsidizing Subprime Lenders; Wall Street.

Credit Writedowns Wed 2009-08-26 16:38 EDT

The FDIC and the socialization of banking losses

With the Federal Deposit Insurance Corporation (FDIC) about to release its latest figures for banks it regulates and its own financial condition, now is a good time to review its role in this crisis. This post is about the FDIC's role in the credit crisis, how it seizes banks and why I believe this matters. [...] ``the way assets are seized and sold represents a redistribution of income from taxpayers to the acquiring entities''

banks losses; credit writedowns; FDIC; social.

The Big Picture Wed 2009-08-26 16:02 EDT

Hoenig: Let Big U.S. Banks Fail

Kansas City Fed President Thomas Hoenig, the host for the annual Jackson Hole Fed confab, is utterly against bailouts, and thinks ``Too Big To Fail'' is a losing strategy. As I noted previously, ``Real capitalists nationalize; faux capitalists look for the free lunch.'' Bernanke has urged Congress to back part of Hoenig's proposal for dealing with faltering [...]

Big Picture; Hoenig; Let Big U.S. Banks Fail.

Mish's Global Economic Trend Analysis Wed 2009-08-26 16:00 EDT

Critically Under-Capitalized Banks Direct Result Of "Wonderful Chain of Stupidity"

Michael Shedlock

Last week the Wall Street Journal ran an article about how trust securities sank Guaranty Financial Group and six family-controlled Illinois banks in early July. Please consider In New Phase of Crisis, Securities Sink Banks. Federal officials on Thursday were poised to seize Guaranty Financial Group Inc., in what would be the 10th-largest bank failure in U.S. history. Guaranty's woes were caused by its investment portfolio, stuffed with deteriorating securities created from pools of mortgages originated by some of the nation's worst lenders. Delinquency rates on the holdings have soared as high as 40%, forcing write-downs last month that consumed all of the bank's capital. Guaranty is one of thousands of banks that invested in such securities, which were often highly rated but ultimately hinged on the health of... Security losses are a non-operating item and are listed after pre-tax operating income on the call report. This is very unusual and possibly reveals another cancer hiding on many banks balance sheets. those garbage trust-preferred securities problems are on top of the widely expected fallout from commercial real estate problems affecting small to medium-sized regional banks. Thus, banking woes are much deeper in many areas than either the FDIC or Fed is admitting.

Capitalized Banks Direct Result; Criticizes; Mish's Global Economic Trend Analysis; Stupid; Wonderful Chain.

Mish's Global Economic Trend Analysis Wed 2009-08-26 15:55 EDT

Emails from a Bank Owner regarding FDIC and Under-Capitalized Banks

Michael Shedlock

Here is an interesting Email from a Bank Owner and CEO regarding As of Friday August 14, 2009, FDIC is Bankrupt. ``I have been in banking for over 30 years and from my perspective this is much worse than anything I have seen.'' ABO, who as been in the business 30 years, writes: A comment concerning the FDIC - As of June 30 the rates being charged banks have increased substantially. Risk 1 category went to 12 basis points from 5, risk 2, 17 basis points, risk 3, 35 basis points, and risk 5, 50 basis points. Additionally, a 5 basis point special assessment is being charged on September 30 on total assets less tier 1 capital. It is probable that a second assessment will also be charged in December. The cost of FDIC insurance for a two hundred million dollar, 1 risk rated bank last year would have been around...

bank owner; capitalized banks; Email; FDIC; Mish's Global Economic Trend Analysis.

Zero Hedge Wed 2009-08-26 15:52 EDT

The Goldman VaR Exemption Question Escalates

Tyler Durden

It seems only yesterday that Zero Hedge had some questions in regard to Goldman's VaR Fed exemption. No response was received from 85 Broad. Today it appears several Congressmen, lead by Alan Grayson, are willing to drive a sharp stick pretty deep into the hornets' nest, by sending a letter directly to Wall Street Don Ben Bernanke, demanding an explanation exactly to the question of Goldman's VaR Exemption. Posted 2009-07-27.

Goldman VaR Exemption Question Escalates; Zero Hedge.

ClubOrlov Wed 2009-08-26 15:25 EDT

Local food: success is 100% possible

kollapsnik

This is a guest post from Tim, a city planner from sunny Moncton, NB. Tim has spent some time looking into the viability of local, small scale agriculture, and has come up with some results that give us every reason to be optimistic regarding our ability to feed ourselves through our individual and neighborhood-scale efforts, even as the systems of large-scale, industrial agriculture and food delivery unravel due to a combination of high input costs, epic droughts brought on by accelerating climate change, and a shortage of credit caused by the financial collapse. The remaining challenge is start doing it quickly enough: this summer, that is. "Russian households (inclusive of both urban and rural) collectively grow 92% of country's potatoes on their garden-plots, the size of which is typically...

100; ClubOrlov; local food; possible; Success.

ClubOrlov Wed 2009-08-26 10:59 EDT

The new new money

kollapsnik

It's official: The government in Beijing has announced that the Yuan can now be used in international trade. Their mouthpiece for this occasion was the Industrial and Commercial Bank of China, a private entity, which made the announcement on their behalf. By the end of this year, it is expected that fully 50% of all transactions with Hong Kong will be denominated in the Yuan. In turn, Hong Kong re-exports 90% of its Chinese imports. Importer #1 is the European Union; importer #2 is the United States. Some of these countries may soon find themselves hard-pressed to earn enough Yuan to continue importing Chinese-made products. This is only the next small step in Beijing's "policy of small steps." Already the Chinese government has ramped down its purchases of US... US dollar losing reserve status; yuan-denominated accounts available in Hong Kong.

ClubOrlov; new new money.

Jesse's Café Américain Thu 2009-08-20 16:46 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.

Jesse's Café Américain Thu 2009-08-20 16:44 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.

Jesse's Café Américain Thu 2009-08-20 16:42 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.

Jesse's Café Américain Thu 2009-08-20 16:36 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.

Jesse's Café Américain Thu 2009-08-20 16:35 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.

Jesse's Café Américain Thu 2009-08-20 16:34 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.

Jesse's Café Américain Thu 2009-08-20 16:29 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.

Jesse's Café Américain Thu 2009-08-20 16:26 EDT

The Next Wave of the Financial Crisis Is Coming (And Why)

Jesse

These excerpts from the most recent TARP Congressional Oversight Panel Report make the risks in the US financial system abundantly clear.Do you think that the Congress has the will and the ability to act on their recommendation, with the men currently in positions of power on the key Committees? Do you believe that the Obama Administration is capable of reforming itself and effecting genuine

comes; Financial Crisis; Jesse's Café Américain; wave.