Anyway, the point stands. The FDIC is clearly out of money, and this is nothing more than yet another legalized accounting fraud game, where they'll get "the money" now but allow the banks to "recognize" that "charge" over time.
NEW YORK (CNNMoney.com) -- The government insurance fund designed to protect consumer bank deposits will likely stay in the red through 2012, Federal Deposit Insurance Corp. chief Sheila Bair said Wednesday.
I know I have brought this up repeatedly, but these sorts of losses simply should never happen. In fact,if the law is followedwith regards to the FDIC,they can't happen.
Today, Senate Banking Committee Chairman Chris Dodd and House Financial Services Committee Chairman Barney Frank asked the heads of U.S. banking regulators to look into whether their companies are carrying home-equity loans at “potentially inflated values,” which “may contribute to resistance on the part of servicers to negotiate the disposition of these liens.”
Most of these loans are in fact worthnothing!
Here's the understatement of the year from the same article:
“It is well understood that the four major banks would likely need an additional capital injection should they be forced to mark the second-lien mortgages on their balance sheets to a realistic value,” Greenwich Financial’s Frey said.
Oh, so you mean our wonderful Congress has in fact encouraged and put into policy and law accounting fraud?
That was easy.
The fact of the matter is that despite Bair continuing to claim "bank deposits are secure"this is an entirely speculative statementand is predicated on the United States being able to continue to borrow money from people who our pigmen and Congress have repeatedly and intentionally ripped off.
The fact of the matter is
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