FDIC PLANNING FOR HUGE BANK FAILURE?
Late reports this evening are citing an anonymous source that says the FDIC is preparing some sort of superfund that could handle the failure of a large “systemically important financial institution.”
“Another source familiar with the FDIC’s plans said on Tuesday that the agency was considering seeking to create a new to help deal with any resolution of systemically important financial institutions.”
The details on this story out of Reuters are very vague so this is mostly speculation, but such a development would not be shocking to anyone familiar with the state of the U.S. banking sector. FDIC losses are quickly mounting and they are certainly ill-prepared to handle a major failure. Shoring up the FDIC is a wise if nothing else. Or they could be preparing some U.S. for the same fate as Chrysler and GM.
As regular readers know, the recent government induced rally created the perfect environment in which to raise capital, but these capital raises only place band aids on axe wounds. The patient is suffering from cancer and we’re performing chemo to no avail. The tumors must be removed (well now that would take Impeaching the One wouldn't it). Instead, we continue to allow the banks to operate with the toxic assets on their balance sheets. The government knows real estate losses and credit card losses are mounting. They also know the TALF & PPIP will not succeed as the banks have no incentive to sell assets.
Well go figure the Bank to the Banks just failed recently bringing the total number of bank failures this year to 31 wait I'll have to check on that its probably more already...
Remember the Happy little spin by the Lamestream media on Jobs? The job loss was "Less Bad" roflmao....and the Stress Tests ahahaha jokes on us the Lamestream media did not want you to think badly about the obamageddon I presume since plenty of them know he is in the pocket of Government Sachs.
Now if they could only stop the Internet and silence us...ro oh they have bills in the works to do just that.
Of course the Government does not want you to know about the Chicago Type Thuggery they used on Banks remember the decent banks did not want the TARP but the criminals in charge wanted plenty of fall guys as they bailed out the obamageddons buddies from Government Sachs who were paid through the back door from AIG! Besides Dirty Dodd and The Obamageddon got special loans from their buddy Angelo and that as well has gotten little if any press even though Angelo is now HOPEFULLY in deep doo doo with the SEC recommending Fraud Charges! and shhh....don't tell anyone the Obamageddon and Tax Cheat Timmy knew about AIG all along.
But we do not want to put a damper on all the Happy Hope and Change talk do we even when Liddy layed an Egg the Lamestream news did not cover it. More protecting you from Reality or protecting themselves and their buddies who even Durbin admits owns them? and shhh the American Financial System could never collapse again right because we have the FDIC and we are right back to the beginning of this post!