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passengers · 28-06-2009, 02:50 PM

Dresdner withdraws as primary dealer for Fed:

MarketWatch.com Story

Denninger thinks this:

SEVERELY Bearish Treasury Development - The Market Ticker

Primary Dealerships were always known as 'the licence to print money'. You wouldn't give one of these up except for a very good reason. Dresdner, of course, has given no reason.

Spin · 29-06-2009, 11:19 PM

Rolling Stone magazine has a very interesting piece on Goldman Sachs this month, here

passengers · 21-07-2009, 02:47 PM

U.S. Rescue May Reach $23.7 Trillion, Barofsky Says (Update3) - Bloomberg.com

$27TR

thats

$27 000 000 000 000

But don't worry as Spin sez the recession is over. Thank fuk for that.

passengers · 21-07-2009, 02:52 PM

As you can see - the DJIA trebled in value between 1931 and 1936, but most commentators would hardly describe that period as being one of economic success...

Butterfly · 21-07-2009, 02:59 PM

and your point is ?

Spin · 21-07-2009, 04:00 PM

Quote:

Originally Posted by passengers

But don't worry as Spin sez the recession is over.

Andrew, all you have done for two years is copy and paste stuff from panic blogs and claimed that tripe to be your own original thought and idea. Also you have proved yourself to be a fool, talking to/about yourself in the third person with your new nic.
Do you think people on here take you seriously?

passengers · 22-07-2009, 04:59 PM

Quote:

Originally Posted by Spin

Do you think people on here take you seriously?

I hope not, but ultra-respect must be afforded the great BKKandrew, who only today released this link:

YouTube - Alan Grayson: "Which Foreigners Got the Fed's $500,000,000,000?" Bernanke: "I Don't Know."

S Landreth · 16-08-2009, 06:06 AM

Largest bank failure of the year on Friday

Colonial BancGroup Inc. became the largest bank failure this year after the Federal Deposit Insurance Corporation seized the struggling Alabama-based lender Friday and sold it to BB&T Corp.

Late Friday, the FDIC announced four other banks had been closed: Community Bank of Las Vegas and its Arizona subsidiary, Community Bank of Arizona; Union Bank, Gilbert, Ariz; and Dwelling House Savings and Loan, Pittsburgh.

The Colonial BancGroup deal will knock roughly $2.8 billion off a pool of money, known as the Deposit Insurance Fund, which the FDIC maintains to guarantee bank customer deposits.

link: http://www.americablog.com/2009/08/largest-bank-failure-of-year-on-friday.html

passengers · 17-08-2009, 04:24 AM

As yet another of BKKandrew's predictions comes true:

Mish's Global Economic Trend Analysis: As of Friday August 14, 2009, FDIC is Bankrupt

Quote:

Bank Failure Friday is in full swing. Tonight there were 5 more failures, numbers 73 through 77 on the year. In the biggest failure since WaMu, BB&T Takes Over Colonial.

Colonial BancGroup Inc., the Alabama lender facing a criminal probe, had its banking operations closed by regulators and taken over by BB&T Corp. in the biggest bank failure since Washington Mutual Inc. collapsed last year.

Branches and deposits of Colonial, Alabama’s second-largest bank, were turned over to Winston-Salem, North Carolina-based BB&T in a deal brokered by the Federal Deposit Insurance Corp., the regulator said today. The failure of Montgomery-based Colonial followed a Florida expansion that saddled the lender with more than $1.7 billion in soured real-estate loans.

Colonial’s failure will deplete the FDIC’s deposit insurance fund by $2.8 billion, the agency said. The fund, which the agency uses to pay customers of a failed bank for deposit losses up to a $250,000 limit and is generated by fees paid by banks, stood at $13 billion at the end of the first quarter, according to the FDIC. The agency has set aside an additional $25 billion for bank failures, agency spokesman David Barr said.

Is There Any Money Left In The Fund?

Tonight, inquiring minds are asking "Is There Any Money Left In The Fund?"

For clues, please consider Saxo Bank Research FDIC’s Shrinking Deposit Insurance Fund – A Testimony of Current Accounting Standards.

As late as in the end of April just before the release of the bank stress tests, Ms. Bair Chairman of the FDIC said they would not need any additional bailouts from the U.S Treasury within the immediate future according to The Bulletin. After three new bank failures last Friday, the FDIC’s Deposit Insurance Fund (DIF) diminished by another $185 million for a total remaining balance of $648.1 million.

Below is a graph showing the DIF capital as a percentage of total bank deposits insured by the FDIC. Note that this graph is based on the old insurance limit with a maximum coverage of $100.000/account. This limit has been changed to cover up to $250.000/account until January 1st 2014. Estimates say that the change increases the deposits covered under FDIC insurance to approximately $6 trillion in total.

The current reserve ratio of 0.014%1 strongly indicates how bad this crisis has affected U.S financial institutions. However, this is not the entire story. If we take a closer look at non-current loans and charge-offs from banks one realizes that the FDIC still has a lot of work to be done. Combined non-current loans and charge-offs amounted to nearly $100 billion in Q109 compared to $15 billion/quarter pre-crisis. Moreover, according to analysts at the Royal Bank of Canada the U.S still has banking failures in the thousands to face before the crisis is over. In turn that should result in the FDIC requesting the pre-approved funding signed by the Congress in May 2009, including $100 billion from the U.S Treasury Department.

Tonight's Bank Failures

Dwelling House Savings and Loan Association, Pittsburgh, Pennsylvania

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.8 million. PNC Bank, National Association's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Dwelling House Savings and Loan Association is the 73rd FDIC-insured institution to fail in the nation this year, and the first in Pennsylvania. The last FDIC-insured institution to be closed in the state was Metropolitan Savings Bank, Pittsburgh, on February 2, 2007.

Colonial Bank, Montgomery, Alabama

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.8 billion. BB&T's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Colonial Bank is the 74th FDIC-insured institution to fail in the nation this year, and the first in Alabama. The last FDIC-insured institution to be closed in the state was Birmingham FSB, Birmingham, on August 21, 1992.

Union Bank, National Association, Gilbert, Arizona

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $61 million. MidFirst Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Union Bank, N.A. is the 75th FDIC-insured institution to fail in the nation this year, and the second in Arizona. The last FDIC-insured institution to be closed in the state was Community Bank of Arizona, Phoenix, also today.

Community Bank of Arizona, Phoenix, Arizona

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $25.5 million. MidFirst Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Community Bank of Arizona is the 76th FDIC-insured institution to fail in the nation this year, and the first in Arizona. The last FDIC-insured institution to be closed in the state was NextBank, Phoenix, on February 7, 2002.

Community Bank of Nevada, Las Vegas, Nevada

The cost to the FDIC's Deposit Insurance Fund is estimated to be $781.5 million. Community Bank of Nevada is the 77th bank to fail this year and the third in Nevada. The last bank to be closed in the state was Great Basin Bank, Elko, on April 17, 2009.

Taxpayers Bailout FDIC

If indeed $641 million was all that remained of the DIF, the FDIC is now bankrupt. Of the $641 million left, Community bank used up 781.5 million and Colonial Bank $2.8 billion

Here is more from the Saxo Report

The real total cost for Q1 09 turned out to be almost twice the amount of the estimates. If that will be even close to reality for Q2 09 the FDIC’s DIF will (very) soon be out of funds completely. [Mish: as of tonight the DIF is bankrupt.]

We believe the main reason for this observation lies in a de facto relaxation of accounting standards, even before the FASB 157 amendment on March 15th earlier this year. Basically the relaxation allows banks to only write-off parts of their losses due to market impairment and they may themselves decide a fair price that the asset could have been sold for during normal market conditions to keep in their books. Allowing banks to control how they mark-to-market their assets, will likely backfire and when they ultimately end up failing, imply greater closure costs for the FDIC. From the graph [below] one can infer that the average yearly DIF costs/bank assets have increased at an alarming rate to almost reach 31% in 2008 and 2009.

Yearly Average DIF Costs / Bank Assets

So, what does that imply? Basically it means that when valuating any U.S bank, their assets should probably be marked down significantly relative to their book value, much because of how they nowadays are allowed to manipulate their balance sheets in order to appear more solvent than they in fact are.

The Moral Hazard of FDIC Insurance

Friday, In reference to Colonial, Shelia Bair made the following galling claim:

"The past 18 months have been a very trying period in the financial services arena, but the FDIC and its staff have performed as Congress envisioned when it created the corporation more than 75 years ago," said FDIC Chairman Sheila C. Bair. "Today, after protecting almost $300 billion in deposits since the current financial crisis began, the FDIC's guarantee is as certain as ever. Our industry funded reserves have covered all losses to date. In fact, losses from today's failures are lower than had been projected. I commend our staff for their excellent work in assuring once again a smooth transition for bank customers with these resolutions. The FDIC continues to stand by the nation's insured deposits with the full faith and credit of the U.S. government. No depositor has ever lost a penny of their insured deposits."

The Seen and the Unseen

Nowhere does "Shelia the Fool" state the cost of this insurance. Without FDIC, banks like Colonial, Bank United, Corus Bank, and possibly even banks like Washington Mutual would have failed long before they mattered.

By offering above market rates on CDs, those bank attracted plenty of capital to the detriment of banks lending responsibly. In order to offer high rates on CDs and deposits, the banks had to take high risks.

Bank United and Corus Bank funded all sorts of risky housing projects including condo towers in the biggest bubble cities. Colonial Bank is under investigation for Fraud.

No one in their right minds would have deposited money at those institutions without FDIC. And if they did it should be their problem not yours or mine.

For more on the Seen and Unseen please see Government Bailouts and the Stock Market - The Seen and the Unseen and Cash For Clunkers For Housing Market Is 'No Brainer'

FDIC Is Asinine Model

There were no bank failures for a very long time during the credit boom. Thus, FDIC insurance seemed to work very well for a while. The reality is such schemes always produce fat tails.

Instead of spreading a small number of small bank failures out over a large number of years, a large number of big failures are all clustered together.

If this is not an asinine model what is? Note this is a failure caused by regulation. There should not be an FDIC in the first place.

Shelia brags "In fact, losses from today's failures are lower than had been projected."

She needs a math lesson. The cost of FDIC is staggering, and the benefits are negative.

Its all magic money now. State failure, civil uprising and Martial Law will be the coming 'normality'.

You were warned. It happened. You are being warned again.

Spin · 17-08-2009, 07:11 AM

Quote:

Originally Posted by passengers

As yet another of BKKandrew's predictions comes true:

No it hasn't. Unless of course you can show me the official declaration of bankruptcy filing?

You cant, so stop with your silly panic blog nonsense.

Quote:

Originally Posted by passengers

State failure, civil uprising and Martial Law will be the coming 'normality'.

One day, when have been proved to be totally and utterly wrong, will you admit to your idiocy in this matter?

passengers · 17-08-2009, 03:23 PM

Quote:

Originally Posted by Spin

Quote:

Originally Posted by passengers

As yet another of BKKandrew's predictions comes true:

No it hasn't.

See:

http://teakdoor.com/us-domestic-issu...tml#post844146 (A note of caution for those with deposits in US Banks)

Back in Nov 08, to which you agreed:

http://teakdoor.com/world-news/49551...ml#post1037439 (Regulators Seize US Banks)

In April

Quote:

Originally Posted by Spin

Unless of course you can show me the official declaration of bankruptcy filing?

Bankruptcy is defined as an inability of an entity to pay their debts as and when they fall due. This accurately describes the FDIC at this time. Of course, it has access to the magic money printing machine that is hell-bent on recreating a Zimbabwean economic model on a larger scale.

AntRobertson · 17-08-2009, 03:49 PM

Quote:

Originally Posted by passengers

As yet another of BKKandrew's predictions comes true

So how rich is he then, this BKKAndrew?

Surely if he's the finance guru that you make him out to be then he'd be filthy, stinking, obscenely rich (and presumably have better things to do with his time than flounce about on a small forum on Thailand

).

Butterfly · 17-08-2009, 06:05 PM

bkka run a motivational course for boiler room candidates, down in lower sukhumvit

Panda · 17-08-2009, 06:16 PM

^^ Everyone sticks their 2 bobs worth in on these kinds of forum debates. Loads of different perspectives and opinions. Some will prove to be closer to the money than others over time. Its just a law of averages thing really. "X%" will end up getting it right or near enough to right to be vindicated.

Personally, I believe some of the posters on boards like this have as much of a grip on the world economy as the worlds financial expert leaders who got us all into this current mess. You got to remember that current "experiment" in using $US paper fiat money as the worlds trading medium has only been going for less than 40 years when the USA ran out of gold to pay off their debts. This "funny money go round" is a whole new and previously unproven financial system introduced at a time when global trade is expanding almost exponentially. The worlds so called financial experts are only guessing what might happen next if they twig this or that. They really have no clue how it might all end up anymore than you or I. The best they can do is to try and keep the global economy afloat for the time being by injecting more and more paper fiat money into the system.

28-06-2009, 02:50 PM	#1221 (permalink)
passengers I am in Jail Last Online: Today 05:42 AM Join Date: Jan 2009 Posts: 590	Dresdner withdraws as primary dealer for Fed: MarketWatch.com Story Denninger thinks this: SEVERELY Bearish Treasury Development - The Market Ticker Primary Dealerships were always known as 'the licence to print money'. You wouldn't give one of these up except for a very good reason. Dresdner, of course, has given no reason. Last edited by passengers : 28-06-2009 at 02:56 PM.

16-08-2009, 06:06 AM	#1228 (permalink)
S Landreth Guest Member Last Online: Yesterday 05:29 PM Join Date: Sep 2008 Location: Khon Kaen Posts: 1,270	Largest bank failure of the year on Friday Colonial BancGroup Inc. became the largest bank failure this year after the Federal Deposit Insurance Corporation seized the struggling Alabama-based lender Friday and sold it to BB&T Corp. Late Friday, the FDIC announced four other banks had been closed: Community Bank of Las Vegas and its Arizona subsidiary, Community Bank of Arizona; Union Bank, Gilbert, Ariz; and Dwelling House Savings and Loan, Pittsburgh. The Colonial BancGroup deal will knock roughly $2.8 billion off a pool of money, known as the Deposit Insurance Fund, which the FDIC maintains to guarantee bank customer deposits. link: http://www.americablog.com/2009/08/largest-bank-failure-of-year-on-friday.html __________________ Keep your friends close, and your enemies closer.

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29-06-2009, 11:19 PM	#1222 (permalink)
Spin Would ya? Join Date: Jul 2006 Posts: 10,378	Rolling Stone magazine has a very interesting piece on Goldman Sachs this month, here

21-07-2009, 02:47 PM	#1223 (permalink)
passengers I am in Jail Last Online: Today 05:42 AM Join Date: Jan 2009 Posts: 590	U.S. Rescue May Reach $23.7 Trillion, Barofsky Says (Update3) - Bloomberg.com $27TR thats $27 000 000 000 000 But don't worry as Spin sez the recession is over. Thank fuk for that.

21-07-2009, 02:52 PM	#1224 (permalink)
passengers I am in Jail Last Online: Today 05:42 AM Join Date: Jan 2009 Posts: 590	As you can see - the DJIA trebled in value between 1931 and 1936, but most commentators would hardly describe that period as being one of economic success...

21-07-2009, 02:59 PM	#1225 (permalink)
Butterfly Suspended Member Join Date: Mar 2006 Posts: 16,846	and your point is ?

17-08-2009, 06:05 PM	#1233 (permalink)
Butterfly Suspended Member Join Date: Mar 2006 Posts: 16,846	bkka run a motivational course for boiler room candidates, down in lower sukhumvit

17-08-2009, 06:16 PM	#1234 (permalink)
Panda Thailand Forum Last Online: Today 04:03 AM Join Date: Jul 2007 Posts: 4,911	^^ Everyone sticks their 2 bobs worth in on these kinds of forum debates. Loads of different perspectives and opinions. Some will prove to be closer to the money than others over time. Its just a law of averages thing really. "X%" will end up getting it right or near enough to right to be vindicated. Personally, I believe some of the posters on boards like this have as much of a grip on the world economy as the worlds financial expert leaders who got us all into this current mess. You got to remember that current "experiment" in using $US paper fiat money as the worlds trading medium has only been going for less than 40 years when the USA ran out of gold to pay off their debts. This "funny money go round" is a whole new and previously unproven financial system introduced at a time when global trade is expanding almost exponentially. The worlds so called financial experts are only guessing what might happen next if they twig this or that. They really have no clue how it might all end up anymore than you or I. The best they can do is to try and keep the global economy afloat for the time being by injecting more and more paper fiat money into the system.

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