July 26, 2008

More banks just failed, and the FDIC who was asleep at the switch is now out another billion or so

Goodbye First National Bank Holding Company

Goodbye First Heritage Bank

Goodbye First National Bank of Arizona

Goodbye First National Bank of Nevada

We'll miss ya.

So will any saver stupid enough to have more than the FDIC limits in your Ponzi Scheme banks.

So will the bankers who paid themselves lavish salaries and bonuses while enabling mortgage fraud.

And so will the FDIC, whose laughably-low reserves are slowly and surely dwindling.

Get ready US Taxpayers for the Great FDIC bailout, coming soon.

Too bad monkeys were running the FDIC these past few years. Should have seen it coming. We did.


Anonymous said...

No no no, you're gonna love this. It just happens that the FDIC took over the failed Superior Bank years ago, but continued to issue subprime mortgage to crappy borrowers and fraudsters, just like the bank was doing until it failed. Imagine this, the very own FDIC was taking liar's loans for years. It's on the WSJ:


Now do you believe me when I say that IT'S ALL RIGGED?

Anonymous said...

This will be our Friday ritual.

Thanks for the great work, Keith. I'm not exposed to this mess except as a taxpayer and via inflation; knowledge is power.

million said...

what's also mind-boggling is that Sheila Bair KNEW this system was a complete mess back in 2003 but still took the job in 2006!


FDIC will end up begging for massive recap efforts (FSLIC, anyone?) but still crumble like cake at Weight Watchers.

and the Socialists will love her and Freddie Mac will make her their CEO after Richard Syron, FSLIC's chief architect (fun factoid!), retires.

keyser soze said...

FDIC examiners used to rip me to shreds on the loans I made...then the FDIC CRA crew would later come in and rip me for not making enough risky loans in neighborhoods with plummeting house values.

Many a sleepless night.

The chickens are coming home to roost...and they are in a fowl mood.

Anonymous said...

The Federal Reserve
Social Security
Fannie Mae
Freddie Mac

All are socialist programs that are doomed to fail. Most of them were used to steal from middle class taxpayers and transfer the wealth to connected DC insiders and their friends. It's the legalized Mafia with an army behind them

Paul E. Math said...

Million, that was a tedious but enlightening read.

Here's my favourite quote from the minutes of the FDIC Advisory Committee on Banking Policy from November 2003 that you linked to:

"Ms. Bair raised the issue about the extremely low capital requirements for government-sponsored enterprises such as Fannie Mae and Freddie Mac that is of concern to Congress and the Administration, and that if the Basel II accords are to lower effective capital requirements, such as mortgage assets, what impact this would have from a supervisory standpoint. She also advised that she had been researching the increased activities of Federal Home Loan Banks ("FHLBs") with respect to mortgage acquisitions and the question of whether that system had the expertise and infrastructure to be managing risks associated with such."

They knew damn well way back in 2003 that these behemoths were undercapitalized and yet here we are bailing them out in 2008.

Anonymous said...

"FDIC Chairman Sheila Bair Is Out Of Control"


We are SO FUCKED !

Got gold as FAST as you CAN ! There isnt enough gold to go around, so get yours NOW !

i've had it said...

i was thinking about the seizures of the two banks today and figured out something about the timing of them: it was done on a friday night. the same thing was done with indymac two weeks ago if i recall: done on a friday night.

well, it's obvious why the feds do this. no one pays attention to the news over the weekend and with the summer here everyone is on their way to their vacation spots. they're hoping no one notices...and they're probably successful at this slight of hand...your average american is sleepwalking thru this crisis and the feds want them to continue to do that. our govt. is so contemptuous of us it makes me sick.

our government is run by criminals. it is an organized crime syndicate.