Posted on 07/02/2009 12:59:19 PM PDT by FromLori
The Federal Deposit Insurance Corp. proposed new guidelines Thursday for potential buyers of failed banks as the government seeks to sell a growing number of closed financial institutions.
The FDIC wants to attract a new class of private equity fund buyers for banks that collapse during the financial crisis, but must provide more transparency than some of those potential investors are accustomed to.
One proposal would require investors to keep the banks they acquire well capitalized at a 15-percent leverage ratio -- or the bank's capital divided by assets -- for at least three years.
Investors also would face limits on their ability to sell assets and lend from the banks they acquire. Investors that operate so-called "silo" organizations where it's hard to determine ownership of the group would not qualify as potential buyers
FDIC Chairman Sheila Bair said some of the proposals likely will be "contentious," especially the one on capital requirements. But she said the FDIC wants to attract more potential investors to auctions for failed banks.
"We want nontraditional investors," she said at an FDIC board meeting. "There is a significant need for capital and there is capital out there."
Regulators already have shut down 45 banks this year, many of them community or regional institutions.
But some recent auctions have been lackluster, with many investors taking a pass because the banks for sale are too small, or because they have financial troubles of their own.
More bank closures are expected as the longest recession since World War II has hobbled financial institutions of all sizes.
(Excerpt) Read more at moneynews.newsmax.com ...
I’ve decided not to have more than 10K in any one bank.
"The Free Republic Bank", hey that has a nice ring to it, get our snout at the public trough...
6/1/09
The banking crisis is supposedly over, but outside of the big firms, the number of FDIC problem-institutions has continued to grow. Also, as you can see, the FDIC is now careening towards broke. At the end of March, it had just $13 billion in assets, or .27% of the total accounts it insures. With more bank failures on the way -- they're announced every Friday -- it's time for an FDIC bailout.
Investors also would face limits on their ability to sell assets and lend from the banks they acquire.
Oh yes. That will bring investors stampeding in!
Don't stand in front of that door, okay?
Don't want you knocked down by the thundering herd of wealthy investors rushing the building...
As Gerald Celente says, “I just love it when they say it’s a bank holiday. Holiday! Like it’s something to celebrate.” It’s coming.
Agree you saw the market watch story then and celentes new video right?
No. I’ll try to find them. I usually search for audio podcasts of him, but I haven’t seen or heard the latest from him.
Here is the video
http://bluelori.blogspot.com/2009/07/new-world-order-global-currency-is-born.html
Here is the market watch story
http://bluelori.blogspot.com/2009/06/ooh-its-holiday-bank-holiday.html
http://static.10gen.com/businessinsider.com/~~/f?id=4a23d7bc14b9b9ce0002b198
I can’t remember who I spoke with about this on FR perhaps a few months ago, but I was assured that the FDIC was entirely several orders of magnitude beyond solvent, even operating at staggering profit, and that I was either ignorant or a lunatic for even suggesting the FDIC is in trouble (and that it was a bad idea in the first place).
I suppose we can throw some more cash into the burning money pit and use some one-sided accounting to shore the FDIC up. Government owned corporations are among the greatest disgraces of America.
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