Posted on 08/14/2009 9:45:52 AM PDT by Kartographer
The Federal Deposit Insurance Corp is taking Colonial BancGroup Inc (CNB.N) into receivership and will sell the struggling lender's branches and deposits to BB&T Corp (BBT.N), Dow Jones said, citing a person familiar with the situation
(Excerpt) Read more at news.yahoo.com ...
Oh yes, of course it will be printed. I really don’t understand how the Fed is planning to “soak up” the extra money it’s put out once things start getting inflationary.
When they run out of dominos. The line has been set, and while ponderous, the outcome is no less certain. There is an artificial factor inserted in this banking mess, in that the cause of these continuing collapses, the toxic real estate loans that have become non-performing and cannot be foreclosed upon, is not being seriously addressed. And now the commercial real estate market is being sucked into the same monetary black hole.
Where will it stop?
Gloom despair and agony on me, deep down depression, excessive misery. If it weren't for bad luck, we'd have no luck at all. Gloom despair and agony on me! (Tip to Buck Owens)
Well, to be accurate, they were reducing their balance sheet for months, esp. throughout February before the QE announcement. Since the QE announcement, their balance sheet has increased to about $2T, varying up and down a bit each week, but more importantly, the composition of the balance sheet has been changing.
They’re pulling money out of the TALF and swaps with other central banks, and they’re buying more Treasury, agency and RMBS paper. It is running about $2 tril, up slightly from the previous week.
For me, the $65,535.00 question will be what happens to the Treasury market when the Fed finishes their purchase of T’s sometime “in October...”?
Well, for the TALF and other bank bailouts, they can just call that money back in, if they wish. The central bank swap lines, once the credit markets look firm enough that the Fed doesn’t expect any large blow-ups, the central bankers can unwind that with little fanfare.
The two things I’m most curious about will be:
1. When the Fed starts pulling their direct-to-bank lending back, will we see banks blow up because there’s another wave of defaults they didn’t see coming any better than the first wave, and the Fed has to quickly step back in?
2. When the Fed stops buying Treasury debt, I’d expect a climb in interest rates. When the Fed starts SELLING the paper they’ve bought, I’d expect rates to go yet higher.
At the rate that the Fed is buying up RMBS paper, I don’t know how they’re going to offload that paper without putting up the mortgage rates. This might be why the Fed is seeking to hire their own trading team - they’re looking to use hedge fund techniques to unwind these positions quietly, so as to minimize the speculation around the unwind.
http://www.cnbc.com/id/32369139
On another thread,this eats up what’s left
Start a tax boycott and Atlas will truly shrug.
Don't send money until we start having some say again.
We're losing our country.
Everyone Must Do Something Everyday
How many dominos fall before the FDIC can't hold - bank runs? - what happens when the system fails... What will our financial system look like, "after"...
Another shoe drops.
Any bets on which one is next?
What surprises me....back in the early part of this mess...I think we assumed that there would be a rush and fail situation. I thought this would be a 100-day period and then what banks remained...were safe enough or secure enough to just continue on. Evidently....that logic won’t work.
So I’m of the mind of wondering now....if any bank in America is safe right now. I’m starting to suspect that the entire group of them have problems and they may all fall eventually.
Can’t win for losing. Another day in bank land.
I think that the stock market rally will stop, and there will be falls next week.
A straight sale of a failed bank would be more comfortable than the gov. getting involved. We are left wondering if part of the gov. compromise was an incentive that has nothing to do with a rational business deal. I bank with three different banks. Two of them have failed in the past year and were "saved" by the FDIC. Seems the ice is getting thinner.
Classic Toddster.... no substance, just insults. The 15 year old with the propeller beanie posts again!
Insults? Where?
The better question, other than what he thinks, is how much of his personal/family assets are tied up in Colonial. We might see a shring in HIS balance sheet, which could be good news for those of us fed up with his involvement with Auburn.
Since he's been involved heavily it's been one disaster after another, intermixed with remarkable success. Wish I could convince myself that Lauder is not responsible in some way for the success, and blame ALL of the disaster on him.
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