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The general topic of this message is Budget:
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Subject:
FDIC IS BANKRUPT
To:
President Barack Obama
Sen. Dianne Feinstein
Sen. Barbara Boxer
Rep. Jane Harman
October 19, 2009
FDIC Bankrupt? Uh Huh Again
Gee, who saw this one?
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.
And now we find that this is not a short-term issue either:
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 followed with regards to the FDIC, they can't happen.
What this deficiency shows is that the law has not been followed. It has instead been wantonly and recklessly ignored, as I have repeatedly pointed out:
Well now Doddering Dodd and "I've never been frank" Frank are asking for the impossible:
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 worth nothing!
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 statement and 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 that almost none of the losses taken by the deposit fund should have occurred, and were the law being followed as written, would not have occurred.
The fact of the matter is that Bair should be under indictment, along with Dugan and the rest of the clown car brigade at OTS and OCC, as all three of these agencies are in fact interlocked by their directorates and all have wantonly and willfully ignored the mandates of the law with regard to not allowing banks and other financial institutions to develop negative equity positions.
The fact of the matter is that our so-called "oversight" instrumentalities, including Congress and Treasury, simply do not give a damn and none of them have lifted a finger to do anything about the wanton and willful disregard for the law. It doesn't help that these laws lack an "or else" that can bring criminal sanction for violations. Gee, was that intentional when these laws were written? Lie to the public about how "safe and sound" one's deposits are, while praying that the ponzi scheme continues to work out ok?
Note that nobody in the mainstream media bothers to bring up "Prompt Corrective Action" and demand from Bair and rest the answer to one simple question: "How does a bank get into a situation where it has a 20, 30, 40, 50% loss on it's asset base when Prompt Corrective Action and Tier Capital requirements are supposed to cause banks to be seized before ANY loss occurs?"
Don't expect the mainstream media to get off their knees any time soon, just as Congress and The Administration have refused to do so.
Los Angeles , CA
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