US Treasury Calls TARP Repayments A “Milestone” While Ignoring The Elephants In The Room
Treasury’s Victory Call On Financial Bailout Premature
The Treasury Department’s latest public relations effort to highlight the success of the financial system bailout focuses on the amount of TARP repayments versus total debt outstanding. In addition, the Treasury, [...]
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 [...]
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 [...]
Feds To CIT - “Your Loan Application Has Been Denied”
CIT Solution Is Bankruptcy - Not Bailout
A CIT spokesman said late today that “There is no appreciable likelihood of additional government support being provided over the near term”. Taxpayers had previously supplied a massive $2.3 billion dollars [...]
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 [...]
