Federal Reserve Super Low Rate Policy Crushes Savers And The Elderly
Fed Sees Solution In Zero Rates
The Federal Reserve recently vowed to keep interest rates “exceptionally low” for the foreseeable future in an attempt to revive the economy. Since mid 2006 the Fed has brought the [...]
The Correlation Between Incomes And Default Rates
The Marginalization Of Risk
The massive number of loan defaults that has put the entire banking industry on the brink on insolvency did not happen by accident. Banks recklessly extended credit, even to low income borrowers who obviously [...]
FDIC Considers Borrowing From Treasury As Banking Failures Increase
FDIC May Request Treasury Loan As Losses Grow
The FDIC always takes pride in noting that it is self funding and covers failed bank losses by assessments on FDIC insured member financial institutions.
Congress created the Federal Deposit Insurance [...]
Feds Finally Move To Restrict Excessive Bank Compensation And Risk
Bailout Funds Go To Bank Bonuses
Banks that lost billions of dollars on speculative investments and poor loans have routinely been awarding thousands of employees massive bonus payments. Ironically, the only reason many of these banks are still [...]
Long Overdue Mortgage Regulations To Curb Lending Abuses
Feds React To Mortgage Lending Fiasco
In a move that can only be described as better late than never, various new Federal laws that restrict certain lending practices become effective on or after October 1, 2009. Other regulations [...]
The FDIC Deposit Insurance Fund (DIF) - A Risky Game Of Confidence
FDIC Rightly Worries About Public Confidence
Due to the large number of bank failures during 2009 the FDIC Deposit Insurance Fund (DIF) has fallen to the lowest level since March 1993. Numerous headlines are screaming that the FDIC [...]
Geithner’s Pump And Dump Scheme
Pump and Dump
According to the SEC website, a pump and dump scheme is one of the most common investment frauds and works as follows:
First, there’s the glowing press release about a company, usually on its financial health [...]
TARP 2 - Will Bad Loans Wipe Out Newly Raised Bank Capital?
Are The Banks Paying Back TARP Money Too Soon?
Since the beginning of the year, major banks have raised over $200 billion in capital, far in excess of the $75 billion of new capital that the government stress [...]
Banks Loss Reserves Can’t Keep Pace With Troubled Loans
The latest FDIC Quarterly Banking Profile reveals that banks increased loan loss reserves by 11.5% and the ratio of reserves to total loans increased to 2.5%, an all time high. Despite the large loan loss reserves, the [...]
