Banking On The Financial System? Not So Fast! 150 Lenders in trouble?

Banking On The Financial System? Not So Fast!
Market-Ticker.org

Hoh hoh hoh! We're finally seeing some recognition of what I've been talking about for the last two years!

Aug. 14 (Bloomberg) -- More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.

And Bloomberg appears to have recognized the key problem with these banks (all of which should have been shut over a year ago):

Excluding the stress-test list, banks with nonperformers above 5 percent had combined deposits of $193 billion, according to Bloomberg data. That’s almost 15 times the size of the FDIC’s deposit insurance fund at the end of the first quarter.

Yeah, that's a problem.

Can anyone say, "Bank Holiday!?"

This has been brought up in quite a few threads lately, and this might go to support that view...

I'm not advocating anything here, but, I'd keep my eyes peeled... :shk:

Toxic Loans Topping 5% May Push 150 Banks to Point of No Return
www.bloomberg.com...

[edit on 8/14/2009 by Hx3_1963]

reply to post by Hx3_1963


There is no recovery to be seen nor had for the foreseeable future. The talking heads try to persuade everyone otherwise but the true numbers don't lie.

reply to post by warrenb
I just love his closing remarks...

~
As a consequence of our government's refusal to face this problem head-on in 2007 and 2008 (despite many calling for it, myself included) we are nowhere near the end of this crisis, despite rallies in the stock market. Indeed, I remain convinced that recognition of reality will come fast and hard in the next year or so as these "not too big to fail" firms blow up one by one, forcing regulators to come in and close them, and finally, asset valuations are forced down to a realm that comports with reality.

The man has a solid grasp of reality...unlike the "Talking Heads"... :shk:

Here's something to keep you occupied/entertained on Friday Afternoons around 5pm...

Failed Bank List
www.fdic.gov...

Thanks for the heads up Hx!....I've been on the fence as far as the "bank holiday whispering" goes, but I'm definitely going to be paying more attention now.

Thanks, as always, from a long-time "market lurker"...

-fmf

I am SO glad I switched from a big national bank that got bought out by tarp money to a small locally owned bank that has been around for 100 years and has no toxic loans.

What exactly happens during a "Bank Holiday"?

I know the banks close, but are we still able to make purchases with debit cards and write checks and what not, or is all that shut down too?

reply to post by jjkenobi
I've also heard "whispers" of a Bank Consolidation, if, a "Holiday" is imposed...

Some of the smaller ones that are having problems, might be merged into the "To Big to Fail" TARP entitys...

I use a local Credit Union...not much interest to be made in these, but, they "seem" safer at this point...even though 2 large ones were taken over earlier this year...

NCUA Conserves U.S. Central and Western Corporate Credit Unions
Fri, 20 Mar 2009 19:00:00 -0500
www.ncua.gov...

NCUA
www.ncua.gov...

Hmmm...I missed this...

Media Release - Community One FCU Closes, Members Now Served by America First FCU
Wed, 12 Aug 2009 12:04:00 -0500
www.ncua.gov...

Eastern Financial Florida Credit Union Placed In Conservatorship
Fri, 24 Apr 2009 14:10:00 -0500
www.ncua.gov...

[edit on 8/14/2009 by Hx3_1963]

It is the consolidation that will be the crowning objective of those that are (or were) 'too big to fail'.

They will arrange the numbers to ensure that we can find some politicians and global leaders to publicly 'beg' them to to consolidate the ownership....


And then ... well ... I'm sure I don't need to tell you.

Originally posted by Hastobemoretolife
What exactly happens during a "Bank Holiday"?

I know the banks close, but are we still able to make purchases with debit cards and write checks and what not, or is all that shut down too?

Here's Wiki's definition/explanation...

Emergency Banking Act
en.wikipedia.org...

The Emergency Banking Act (the official title of which was the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. It was passed on March 9, 1933. The act allowed a plan that would close down insolvent banks and reorganize and reopen those banks strong enough to survive. In summary, the provisions of the act were as follows:

And the Google search...

Bank Holiday

Emergency Banking Act

[edit on 8/14/2009 by Hx3_1963]

reply to post by Hx3_1963


Thanks, okay, well I guess congress voting on a bill without reading it is nothing new.

It looks like the TARP wasn't the first bill that gave the president broad sweeping powers.

It looks like the FED really made out cashing in all those gold back bonds for 90% of there value.

So as far as government is concerned give them more power is always the answer. Also a democrat sweep, what is is that they say about history?

reply to post by Hastobemoretolife
"History doesn't repeat itself, but it does rhyme."
-- Mark Twain --

Another wise man from a similar time... :shk:

I'm still diggin' on 3 or 4 that have been in the headlines lately...

Colonial...Corus...Guaranty..Regions...

Pump Monkey Orgasms
market-ticker.org...

Is The FDIC Broke And Covering It Up?
market-ticker.org...

[edit on 8/14/2009 by Hx3_1963]

reply to post by Hx3_1963


That he was, that he was.

What is the term you like to use..... oh yea scroomed, we are soooooo scroomed.

Of course we already knew this, most of us have been waiting for the day, but the market kept climbing and the Ministry of Truth kept reporting that there were "Green Shoots" in the atrium of America. The knights of the Nobel keep reassuring us that "There is nothing to see here, move along" and so the masses went on their way.

I think I'm going to

One Of Three Down; Is The FDIC Still Solvent?
Market-Ticker.org

Here we go!

Colonial, Alabama’s second-largest bank, is being closed by regulators today, the person said, becoming the largest U.S. bank failure of 2009 after an expansion into Florida saddled the lender with more than $1.7 billion in soured real-estate loans.

The FDIC usually waits until the close of business Friday; they must have had a slight problem with withdrawals......

Left unsaid is what's going to happen to the FDIC's deposit insurance fund on this one - my guess is that it will be ugly, as these guys were up to their necks in Florida on development projects that went bad. The "value" of that paper may be very close to zero; if the FDIC avoids doing one of their 40% loss deals I will be quite surprised.

A 40% loss on this one would, if my math is right, kill the rest of their insurance fund plus quite a bit and put the FDIC in the position of immediately needing to go hit up Treasury for more money.

That ought to be good for confidence, right?

Oh, there are two more on the "you're dead" list that I've been talking about for a while: CORUS and Guaranty, both of which have said they (as of last filing) have a negative Tier Capital Ratio, meaning that they are formally underwater and IMHO should have been seized months ago.

But don't worry, Treasury has an infinite credit card to keep funding the FDIC with, right?

"Heh Mr. Chinaman, can you spare an extra trillion - or three?"

The Market Ticker
Entries by Karl Denninger
market-ticker.org...

[edit on 8/14/2009 by Hx3_1963]

reply to post by Hx3_1963


Hey Hx3... why do you keep spreading the propaganda, the government told me the recession is over and we are seeing signs of recovery!

Yea the recession is over alright, but they left of the mention that the depression is just starting. So there are still two "mega" banks that have yet to be seized, which should have been done months ago according to KD, so that leaves a few questions.

When will find out details on this "seizure"? Does FDIC go hit up the treasury for more [s]fake cash[/s], US Dollars after this debacle? Is the FDIC not seizing the other two banks because they are desperately looking for a buyer for two institutions that nobody wants to touch? What happens if the FDIC goes insolvent? Also, what does BB&T gain off of buying the banks with an iron clad loss agreement?

It isn't looking good for the economy, or us for that matter.

reply to post by Hastobemoretolife

When will find out details on this "seizure"? Does FDIC go hit up the treasury for more [s]fake cash[/s], US Dollars after this debacle? Is the FDIC not seizing the other two banks because they are desperately looking for a buyer for two institutions that nobody wants to touch? What happens if the FDIC goes insolvent? Also, what does BB&T gain off of buying the banks with an iron clad loss agreement?

1) ??? Keep an eye on MSM/Bloomberg/Reuters or Failed Bank List

2) If the shared losses exceed the balance of their funding...

3) Yes...and they need to see how this Colonial turns out...as in if they need to draw on the $500B backstop they can access from the Treasury...

4) See #3

5) Access to FED *Asset* protection...just because they paid off the $3.1B doesn't mean there is no backstop...just no oversight on comp... ...Don't be ridiculous Balkie!

Sound right?

[edit on 8/14/2009 by Hx3_1963]

reply to post by Hx3_1963


Yes it does.

Did I miss the part where they passed legislation to extend FDIC to 500 billion or are they just going to do it anyway? The latter answer wouldn't surprise me in the least.

I see so BB&T is jealous that they can't get their hands into the taxpayers pockets so they picked up a bank that would allow them to do so.

Honestly this all reeks of insider deals for hell. Seems like somebody higher up in BB&T has some connections with Goldman Sachs, er.. the Treasury, for the FDIC to do what it did.

I guess we will have to wait and see.

reply to post by Hastobemoretolife
Yep...easy to miss these "Little Thingys" in the "Hustle/Bustle" of big FED finance...

Senate Moves to Loan FDIC $500 Billion
Thursday, March 05, 2009
www.foxnews.com...

See...all better now!

I see so BB&T is jealous that they can't get their hands into the taxpayers pockets so they picked up a bank that would allow them to do so.

Yep...you catch on fast "Weed-Hopper"


[edit on 8/14/2009 by Hx3_1963]

refer to: The "up-to-the-minute Market Data" thread
www.abovetopsecret.com...

And follow along...(Due to T/C Dbl Posting Rules...)