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Thread: Failed Bank List

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    Default Re: Failed Bank List

    insight from a 'professional investor's' BBS ...

    (snip)": Tonights 3 banks had total assets of $8B of which
    : Corus Bank (Chicago) had $7B and Venture Bank (WA)
    : had just under $1B. Brickwell Community Bank (MN)
    : only had assets of $72M.
    :
    : My estimate for 100 closures from August thru
    : December is a little behind. I need about 5
    : closures per week and we have had an average of
    : only 4 per week so far. But I still stand by my
    : assessment because I expect the rate of closures
    : to increase toward year-end.
    :
    : Probably the bigger question is: which week will
    : be the tipping point where the FDIC is totally out
    : of cash and can no longer bleed member banks of
    : any more assessments? When will the FDIC be forced
    : to go hat in hand to the Fed to begin drawing on
    : its $600B line of credit?
    :
    : I guess this also begs the question of: Some of
    : the larger FDIC member banks are also qualified
    : for TARP and other bailout programs. How much of
    : the current FDIC assessments from member banks is
    : actually coming from taxpayer bailout cash through
    : the various Fed programs?
    :
    : Hmmmm, kind of makes you wonder if this is just
    : one of a whole basket full of reasons why the Fed
    : does not want to release names and amounts of
    : bailouts made to banks.
    :
    : Do you think Americans would get upset if they
    : found out that some the FDIC cash used to pay for
    : deposit insurance for seized banks is actually
    : taxpayer money as funnelled through the Fed's TARP
    : and other taxpayer-funded bailout programs?
    (snip)


    The former point is of interest because recent FDIC 'special assessments' for bank FDIC insurance premiums is essentially consuming the entire profit margins of regional / local banks who have shied away from high profit but high risk loans / investments. Thus the across the board FDIC 'special assessments' for bank FDIC insurance premiums may in fact accelerate the failure of otherwise economically conservative banks !

    The latter point is of particular interest i.e. the distinct possibility that US taxpayer TARP money is already being used to fund FDIC insurance premium collections from large 'bailed-out' banks. If true, this means that the FDIC is already bankrupt ... but is able to conceal this fact via a 'stealth' taxpayer funded bailout program involving TARP money.

    But the real joker in the deck is the upcoming struggle by President Obama and the US congress to pass yet another increase in the US gov't debt ceiling within the next few weeks. If this fails, or is delayed, the US Treasury may not have the legal ability to make good on its promised $600 billion line of credit to 'bail out' the nearly bankrupt FDIC. THAT situation could get really ugly really fast !


    FYI the same 'professional investors' BBS also made the observation that someone bought 150,000 'put' contracts on Wells Fargo bank yesterday !

    ~
    Last edited by Melonie; 09-12-2009 at 09:57 AM.

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    Default Re: Failed Bank List

    Melonie, do you have the list of the article that states that someone bought puts on Wells Fargo?

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    Banned Melonie's Avatar
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    Default Re: Failed Bank List

    ^^^ these guys are professional traders ... who caught the 150,000 puts being bought as it crossed their terminal. As far as I know there isn't any mainstream financial media publicity to link to.

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