Posted on 07/31/2009 12:37:47 PM PDT by rabscuttle385
NEW YORK (Fortune) -- Guaranty Bank is hardly a household name. But the Austin, Texas-based thrift's looming failure is shaping up as a big headache for bank supervisors -- not to mention a black eye for Carl Icahn and others in the smart money set.
Guaranty (GFG) could be soon seized by the government in what would be the biggest bank failure in a year that has already had 64 of them. Last week, the bank warned investors to expect a federal takeover after regulators forced a writedown of its risky mortgage investments and a bid to raise new capital failed.
Guaranty has $13.4 billion in assets and operates 160 branches in Texas and California -- two of the three best banking markets in the nation, thanks to their size and population growth.
. . . . .
A big tab on Guaranty would be costly to the deposit fund, whose balance was $13 billion at the end of the first quarter. The FDIC has estimated failure costs on cases since then at $11.2 billion.
A spokesman for the FDIC stresses that it has already set aside an additional $22 billion for failure-related costs in 2009, and adds that congressional action this spring gave the agency access to $500 billion in Treasury credit.
(Excerpt) Read more at money.cnn.com ...
KMA!!!!!!!!!! You go right ahead and trust them. As of January 20th 2009 I don’t trust anything the government has it’s grimy paws on. I trust the Constitution. They choose to wipe their ass with it, I don’t trust any of them.
And what on earth are they doing *here*?
On DU? Par for the course...
Well, I’m not a man, or spreading false stories trying to incite class warfare. But I don’t believe the current American banking system is “utterly sound” at all. I don’t think they’ll go insolvent. I just laugh that they have the ability to print half a trillion dollars. This subject is related to, and affected by, Obama’s mismanagement and utter incompetence, but the same things could just as easily be happening if McCain had been elected.
So are you saying I’m disloyal and hate American civilization, too?
And you just resent it. I'll say it again. You are nothing but a wealth hating communist. Now come on, let the really smart folks print a bunch of money and give it to other smart folks so America can be great again and just shut up. Please. It's for your own good.
Don't hold back: tell us what you really think.
I remember yodeling about this in March. If the FDIC fails to make good on savings accounts, middle America is going to disappear. Gold in foreign safes is looking better by the day...
The second thing is this: the FDIC will not be allowed to fail for obvious political reasons. They can't middle America would be wiped out and Geithner will be walking the plank...BUT all of this Fed and Treasury money infusion is turning the dollar into crapola. The world is starting to look for different kinds of payment to preserve value. I've seen a contract recently where the non- US party wanted payment in something other than US Dollars. Too risky, given the relentless increase in money supply. When the music stops and everyone scrambles for the chairs, there won't be enough chairs. The smart money is getting out now. Before the music stops...
THIS is delusional! They are destroying the very value of the currency they are trying to save. And, in my opinion, Goldman is a bunch of opportunistic pirates who have assisted in the corruption of our Federal government to the point where our government no longer works and our currency is about to become worthless. Meanwhile, they have secured their wealth on a global level... We are the victims of a brilliantly executed financial rape...
Both communists AND capitalists are having their asses handed to them at the moment...
The media is no longer the Fourth Estate it is a propaganda shill for the Left. Remember the poet Allan Ginsberg? Harry old ..., well, anyway, he was fond of saying "Control the media, control the culture." I think he was quoting Lenin but the fact remains. They control the media. It is not free. It is not fair. It is not objective and it does not support the non-Left Wing...
If we lose this battle, I'll buy you a beer in Singapore...
“Stop spreading irresponsible rumors and slander about important American institutions.”
What’s discusting is the existance of FDIC and the Federal Reserve!
Stop drinking the pro-government kool-aid; it's disgusting.
FDIC is broke.
September is when it will all fall.
Nor is any of the above surprising in the least. Banks wrote off $1.8 trillion in bad debts and loan losses last year, the corporate paper market ran off another quarter of a trillion, as did the mortgage agencies. All the funds the Fed added to the banking system barely sufficed to keep consumer prices broadly stable, and if they had done nothing those prices would have collapsed 40%, just like houses, stocks, and commodities all collapsed.
The Fed's *job* is a deflationary smash is to *add money* to keep its *value* roughly unchanged - not its *quantity* unchanged. This is precisely what the Fed *failed* to do in the 30s and was rightly excoriated for by actual monetarist economists. Now with it doing the correct thing with the correct result, it is excoriated by men who *wanted* the smash to be *worse*, because they don't like the government or any of its institutions or present policies. They simply want to be *obeyed*, and if their pet policies are not enacted them they ritualistically predict disaster - and *want* it.
They are in this respect no different from the leftists who wanted to lose the war in Iraq because the other party voted for it. The disease is hyperpartisanship and its underlying cause is the inability to admit that politics is not the sum total of human life, combined with a strident demand for total obediance to this or that "canned" ideology.
Well, the world simply does not require your approval to live and adapt and grow.
You might attack several contemporary policies as harmful to the economy - raising taxes in a recession this steep is something no actual economist supports, only flaks; cap and trade is a ruinous and unmotivated attack on the sinews of industry; you can't make health care cost less by subsidizing it still more. But nobody does. Everyone instead attacks the Fed and Wall Street and everything Bush also supported. They attack the country and they prophesy doom, doom, doom.
They want doom. If they are not obeyed they want the country to die and be damned. Their ideas are not, in their own minds, an objective technocratic means to the good of the country; they are a political means - slogans and jargon - to obtain obediance to their demands and power for themselves.
A looter and a pol can wave any flag, even one first stitched by capitalists. By their doom mongering you will know them. Men only committed to seeking power for themselves believe that any deviation from their list of demands is damnable and spells doom. Men actually committed to the survival and the success of liberty believe in the survival and the success of liberty.
Fall starts around the September 21st, every year.
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