Posted on 08/27/2009 3:25:44 PM PDT by RobinMasters
The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May.
“We’ve already lost 81 this year,” he told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They're smaller companies.”
Failed banks tend to be smaller and private, which exacerbates the problem for small business borrowers, said Kanas, who became CEO of BankUnited when his firm bought the bank and is the former chairman and CEO of North Fork bank.
“Government money has propped up the very large institutions as a result of the stimulus package,” he said. “There’s really very little lifeline available for the small institutions that are suffering.”
This comes at a time when the FDIC has established new rules on bank sales. Private equity, for instance, would have to hold double the capital of their competitors in order to buy such an institution, said Kanas.
(Excerpt) Read more at cnbc.com ...
thats ok our dictator can take them over.
DEPORT BARRY SATORO!
And yet they want us to believe job losses will stop, people will begin buying cars and houses, and the economy will grow again?
“...many of these institutions nobody’s ever heard of?”
Except, maybe, possibly, THEIR INVESTORS!!! Or the American’s who bank with them???
Nobody’s ever heard of??? Can I just open, then, the FirstUnitedNationalBankofPAMom? I’ll protect your investment real gooood.
FUBO your not my Prez! and another 100 million agree. It’s time to kick some a__!
I think we need to throw another 10 trillion at it.
That will fix the problem FOR SURE!
*facepalm*
We obviously need to borrow more money and the government needs to print more money (/sarc)
Did you see the job postings advertised by the FDIC?
They’re in a huge hurry to fill hundreds financial-type jobs in the next two months.
Stimulus 2! That should take care of everything.
great..I own private stock in and helped start-up two small banks 4-5 years ago, but only one took TARP loan.
both were hit by the Silverton collapse
http://www.nytimes.com/2009/06/06/business/06silverton.html
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Did you see the job postings advertised by the FDIC? They’re in a huge hurry to fill hundreds financial-type jobs in the next two months. I saw this elsewhere, but it sums up what is going on out there in the housing market that is still driving this economy:When a statutory foreclosure takes place on a property in most states, it will wipe clear nearly ALL other liens on that property.Traditionally, banks absolutely LOVE this, as they can gain a house dirt cheap, especially if the house has a home equity loan on it, if the home owner has paid down some of the principle, or a 2nd or 3rd mortgage exists that contributed to the purchase price when bought. However, for the last several months, many banks will inform a delinquent homeowner that the bank is foreclosing on the house and they MUST move out. The bank might threaten to have the sheriff remove the delinquent home owner and his belongings. But in many cases, banks are NOT “pulling the trigger” and statutorily foreclosing on properties. The banks are instead just leaving the houses vacant -- on approximately one-third of homes of which could have been legally foreclosed on by the banks. So WHY IN THE HELL aren't banks legally foreclosing on the courthouse steps when they legally can? The Financial Accounting Standards Board eased the rules on mark-to-market bookkeeping in April, giving banks more time to convert assets. However, unchanged in the new rules is that the minute a bank legally forecloses on a house -- WHAM, they have to record that new foreclosure price down in their books, often taking a HUGE loss. For example, if a bank forecloses on a house and resells it to an investor for $150K, when the mortgage had $250K left, the bank then must record a NEGATIVE $100K in the books. No big deal in a normal market – the bank would normally just absorb the loss. But in THIS market, with few qualified buyers and LOTS of inventory, if a bank does that on hundreds or thousands of homes too rapidly – that bank would set off automatic valuation triggers, no longer be financially-solvent, and the FDIC would swoop down and take possession of that bank. Quite frankly, the FDIC is hiring like mad to have enough employees to manage these bank assets when they take possession. They aren’t in a hurry, per se, to take over ALL of the banks they really SHOULD take over. That is, not until they have enough asset managers, auditors, etc in place to manage taking over those banks. That massive FDIC hiring frenzy is still going on at this time. So when you hear news anchors say that the banks are fine, the housing market is rebounding, and that the economy is in an upturn, remember this chart: |
Obama is in way over his head. Its apparent. The stock market is very much set for a major correction. I see no reason why it has risen as much as it has. There are close to 2 million people within the next 6 months who will run out of unemploy benefits.
I dont think it will go another full year before people realize how bad it is. I volunteer at a soup kitchen a couple days a month. The volume usually is about 100 a day. Its been more than, I would estimate, 300 a day the times Im there.
bttt
We are in a stock market rally, all is well.
LOL!!! That would make a fabulous tagline!
May I borrow it for a few days?
I’m not a banking expert, but I get an eerie tin-foil scenario running to fruition. Last year before the economy cratered, Chuck Shumer said he didn’t think one of the banks (the name is escaping me right now) wasn’t going to have enough money to be solvent. The next day, there was a run on that bank and like dominos the rest of the banking sectors began to fall.
I seem to remember that during this process, some $800B to $2.3Trillion was removed from the market by unknown sources. Combine that with what Congress new was going on at Fannie and Freddie (Rahm Emanuel knew, and so did BFrank). I get the feeling that someone in the ‘knew’ new how to set this off and they timed it to elect Obama.
And this was planned for years and years. Now, they’re using this to consolidate the banking industry - forcing some of the largest banks to purchase or merge with others - to create a very short list of banks. It’s a whole lot easier to take over 100 banks than 10,000.
Maybe someone here who remembers this timeline of event a little better could put together the facts and make a better case than i can at 0030 in the morning, but each time I see news like this, I just feel like they’re going to take over all of the banks - then with the click of a mouse - they would have the power to freeze every dime we all have.
Don’t like what Rush’s saying, click. Don’t like what Bob the butcher is saying, click. Slap an “the IRS is investigating so your assets have been frozen” sticker on the media and your silenced! and broke! Just the fact that they could have such ability, it’s beyond frightening.
“they timed it to elect Obama.”
I thought that too when it happened last year. The timing of it seemed too perfect. Agree with your comments about the banks also. Easier to control a few than many.
Sad what’s happening to our country, but it seems there is not much one can do (though God will subdue all things in His time).
No, read the Glenn Beck threads for this week.
Preaching to the choir.
Many of those jobs are being advertised in FL.
Some estimates put at 1 million the number of houses that should be foreclosed upon that haven’t been.
The banking and especially the credit system is about to collapse. Any “green-shoot news” about housing recovery is all absurd until the massive inventory of empty houses reduces.
ALL of what Obammie the Commie is doing is designed to destroy the US dollar and throw America into Crisis mode, so that the American people will demand we dump the US dollar, sign on to a global currency controlled by a global, central bank, even if that means sacrificing some or much of our individual wealth and liberty. Because, ultimately, this will result in food shortages, the best way to control people.
Exactly, when they do a month by month increase in new home starts all you have to do is see that a 16% increase for a county that only started 3 new homes the previous month is not such good news.
A lot of people really need to understand how the numbers game is being manipulated to paint a nice and rosy picture of things when in truth they are crap. I see it even in my wife, whom I love dearly, but she doesn't understand the numbers games they use to deceive people. After I sit down and show her what the big picture really shows and the long term graphs she then "gets it", then gets mad when she realizes they are trying to fool her.
I wish more Americans could be sat down and have this explained to them in a simple way that would make them understand how they are being manipulated by the numbers game.
Karl Denninger of the “market-ticker” (google: “market-ticker”) does a pretty good job of explaining what is happening economically.
It is a complicated scam and I only understand it because I’ve been studying economics and finances intently for the past year.
Scan through my posts for the past couple of days and you’ll see a recommended reading list. There is a heading “Economics.” The books listed there may help your wife out a great deal. Gotta run.
Be prepared.
Thank you for your post. It answers some questions have have been bothering me. Can you tell us the source?
A property next to me has been foreclosed and the owner ejected. It's been empty (and deteriorating) for a year. I inquired about buying it from the bank. They won't give me the time of day. I figured they were holding out for a bailout from the government.
The future for such properties, and the neighborhoods where they exist, doesn't look good. I recently heard that the Congressional finance committee is working up a plan to provide $10-20 billion to buy up foreclosed properties, refurbish them, and make them available as public housing units. Can you elaborate?
Jonah told Nineveh to repent or be destroyed. Saints throughout the United States and the world are telling the United States to repent of the "One" or be destroyed.
Nineveh repented.
I pray the United States will as well.
Obama needs to produce proof that he is legally the president of the United States of America or be removed.
JMHO
Does anyone have the link of the website that lists banks assets, ratings of if and when they look to fail?
I lost it.
You’re correct. I see MANY abandoned homes with no sign of persay foreclosure. Some have people mowing the lawns some don’t. Even when the board of health is called to remove/clean inside/outside hideous rats/snakes/human feces (homeless people?) nothing is done.
Some have the banks original note a bankrupt bank and tracing what banks owns the home is nearly impossible.
I did read it ....the ifo has been out for a couple of weeks.
WHERE IS OVERSIGHT OF BANKING SYSTEM?
or maybe organized crime and community organizers
That would be the same oversight of our ENTIRE government.
HEADS IN THE SAND!
could be destruction of the dollar is what is really behind it. why no impeachment charges? Republicans surely know what is going on ...they must be in on it
The bank had to pay the taxes, keep the utilities turned on, keep the air conditioner running, at least on high, keep the house insured (ever try to buy insurance on a vacant building?), hire a yard service to clean up the yard, and then to come back at once or twice a month and keep the house looking nice, hire a cleaning service to do a one time clean up of the inside of the house, hire a security company to make sure the house was kept safe, and not occupied by derelicts, and hire a bank employee to check up on every one the bank had hired, and make sure they were actually doing their jobs.
That was one reason foreclosures sold for so little in that deeply depressed market -- the bank was not only losing the return it could get on the capital it had locked up in the house, it was paying out cash every month. And that was a Houston bank, with Houston foreclosures. For a company with a nationwide portfolio of loans, the costs of keeping foreclosures looking good enough to sell is probably an order of magnitude higher.
Where did you get that graphic? I am in a discussion with a friend, and that info would essentially confirm what I am saying.
You repeat yourself: community organizers = organized crime
Excellent and informative post. Thanks!
What most people don't know is that the chart (featured on Glenn Beck's show, CNBC, and other places) on Post 17 ABOVE was originally featured as this in 2007, nearly 18 months before things really unraveled in September 2008: This is page 47 of a report by Credit Suisse published in March 2007. The FULL March 2007 report is parked here: "Mortgage Liquidity du Jour: Underestimated No More"This chart has since been updated, as shown in Post #17, bumping the expected foreclosures -UP- on moderate risk loans. Many of those borrowers in those categories bought houses in the 2004-2006 period before underwriters started tightening the terms to lend to high (subprime) and moderate risk (Option ARMS and Alt-A) borrowers under Community Reinvestment Act provisions. So when you hear people like Barney Frank saying they didn't know about the looming foreclosure crisis, and how & when it was going to hit, you can see they LIE through their teeth! They (both Democrats and Republicans) were too busy enjoying contributions and profiting themselves from the inside knowledge. THEY KNEW and let it happen back in early 2007, coming to a head in September 2008, right before the election!!! It's sickening to think of the TRILLIONS of dollars of personal wealth for retirement, mostly from unsuspecting Baby Boomer with IRAs, that is GONE forever. And at the risk of sounding like a broken record -- the WORST is still ahead! The only bright spot might be that for those who are about to have their house foreclosed on, if they ask for the bank to "Produce the Note", they have a hard time doing so. This is because banks sold, and re-sold and re-sold the mortgages leading up to the big bust in September 2008, and have those mortgages tied up in mortgage-backed securities to such a degree that it stalls the actual Statutory Foreclosure process SIGNIFICANTLY. The homeowner then has more time to get another job or find some way to improve the situation. Also, in many states, paying just ONE month's mortgage, even though the owner is 90 days behind, restarts the entire foreclosure process. Fight Foreclosure: Make ‘Em Produce The Note! |
>>Because, ultimately, this will result in food
>>shortages, the best way to control people.
Kurtz: Are you an assassin?
Willard: I’m a soldier.
Kurtz: You are neither; You’re an errand boy, sent by grocery clerks to collect a bill.
"The Appetite of Tyranny is never far removed from the Tyranny of the Appetite."
The Horror...
Obama may be in over his head, but he’s got financial gurus behind him running this thing. Soros, for one; I’m sure there’s others. They’re planning to own assets now in other hands.
Yeah, I’ll elaborate.
Welfare cases get to live in formerly $1,000,000 + McMansions for free while I continue to have to pay for my monthly mortgage payment; while still paying federal taxes for the aquisition, refurbishing and upkeep of said McMansions...
...and how much longer am I going to continue to do so...?
You should look up Steve Cordasco on the internet. He’s got a financial show on local radio here in the Philadelphia region. I used to listen to him while driving to work early on Saturday mornings. He addresses a lot of the things you’re trying to remember and he doesn’t understand why financial reporters are not digging into this story. It’s huge. He also knows a lot about T. Geithner and how he fits into this story.
We tried to buy such a property for over a year last year. We think that the real estate agent was part of the problem. He wanted the property himself and made an offer to the owner while he sat on our offer; he was later arrested for theft, but is still an active agent. We think that he had some kind of arrangement with the bank holding the second mortgage. Then, about the time we found another house to buy, the house quietly sold for 80K less than we had in our offer still on the table. Someone had connections...
Have noticed several for sale signs in our neighborhood over the past 2 yrs. ,collecting the info-flyer i watch the asking price
drop several Ks’$ in 3mo increments... then some still don’t sell, But... the For Sale sign will just disappear and the
house just sits there. So is this the result you are talking about ?
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