8 banks failed Friday! Republicans destroying economy.

[Neubarth]

Bank Name ...............City .....State .....CERT #Closing Date....Updated Date
Sonoma Valley Bank Sonoma CA 27259 August 20, 2010 August 20, 2010
Los Padres Bank .....Solvang CA 32165 August 20, 2010 August 20, 2010
Butte Community Bank Chico CA 33219 August 20, 2010 August 20, 2010
Pacific State Bank ..... Stockton CA 27090 August 20, 2010 August 20, 2010
ShoreBank .... .... ....Chicago IL 15640 August 20, 2010 August 20, 2010
Imperial Savings and Loan Association Martinsville VA 31623 August 20, 2010 August 20, 2010
Independent National Bank Ocala FL 27344 August 20, 2010 August 20, 2010
Community National Bank at Bartow Bartow FL 25266 August 20, 2010 August 20, 2010

 

[uscitizen]

Good we have too many banks anyway. We only need about 4 to cover the nation.
Better competition that way.

 

[Neubarth]

Good we have too many banks anyway. We only need about 4 to cover the nation.
Better competition that way.

But, But, But, But, But, soon the FDIC will be bankrupt.

 

[uscitizen]

Good we have too many banks anyway. We only need about 4 to cover the nation.
Better competition that way.

But, But, But, But, But, soon the FDIC will be bankrupt.

they pretty much technically already are. Just like our nation.
And the morals of it's citizens.

but what do I care? It won't totally fall apart till after I am gone anyway.

 

[hjmick]

ShoreBank... Why does that ring a bell?

 

[fyrenza]

I HAVE to care.

I have a son,

and nephews,

and cousins,

and this big, humongus fambily (Texican for family).

Not even just that, though.

I don't WANT WORSE for future generations;

I'd like for it to be better for them.

I'm here and now, but I'm not all...

 

[uscitizen]

I suppose I care. But nothing I can do. There are no politicians to actually vote FOR.
Voting on the national level is kinda like deciding to die of aids or cancer...
Trying to decide which one sucks less.
All we have is a corporate controlled government.

 

[Metternich]

Republicans are destroying the economy?

I don't understand how either party would have much to do with the FDIC, in its role as a nominally independent regulatory agency, carrying out its basic functions.

 

[uscitizen]

Republicans are destroying the economy?

I don't understand how either party would have much to do with the FDIC, in its role as a nominally independent regulatory agency, carrying out its basic functions.

Umm check into the board that runs the FDIC to determine who runs it.

 

[fyrenza]

I suppose I care. But nothing I can do. There are no politicians to actually vote FOR.
Voting on the national level is kinda like deciding to die of aids or cancer...
Trying to decide which one sucks less.
All we have is a corporate controlled government.

I want ANOTHER option on our ballots:

NO ONE.

A sort of REDO.

Instead of writing in Mickey Mouse or some such,

I'd like for everyone to Fall Back, REGroup, REThink the sitch,

and present us with viable candidates.



But I DO wEnder what would happen if SO MANY of us voted for Mickey,

that he WON...

 

[Metternich]

Republicans are destroying the economy?

I don't understand how either party would have much to do with the FDIC, in its role as a nominally independent regulatory agency, carrying out its basic functions.

Umm check into the board that runs the FDIC to determine who runs it.

I don't see your point.

If a bank is insolvent, it's insolvent. Ideology can't get around the fact that at these institutions (I'm assuming, of course) their financial outlook was incredibly dim.

 

[uscitizen]

Republicans are destroying the economy?

I don't understand how either party would have much to do with the FDIC, in its role as a nominally independent regulatory agency, carrying out its basic functions.

Umm check into the board that runs the FDIC to determine who runs it.

I don't see your point.

If a bank is insolvent, it's insolvent. Ideology can't get around the fact that at these institutions (I'm assuming, of course) their financial outlook was incredibly dim.

Did not the FDIC loosen rules for banks in the past and recently tighten them back up?

 

[Metternich]

Umm check into the board that runs the FDIC to determine who runs it.

I don't see your point.

If a bank is insolvent, it's insolvent. Ideology can't get around the fact that at these institutions (I'm assuming, of course) their financial outlook was incredibly dim.

Did not the FDIC loosen rules for banks in the past and recently tighten them back up?

The FDIC is a completely voluntary agreement that private banks agree too. At any time, they can leave the requirements (and benefits) that the FDIC outlines. Yet, as long as they expect to have customers (who, rightly, choose banks in which their money is insured up to 250k an account) banks follow FDIC rules. Banks are classified in five groups according to their risk-based capital ratio:

* Well capitalized: 10% or higher
* Adequately capitalized: 8% or higher
* Undercapitalized: less than 8%
* Significantly undercapitalized: less than 6%
* Critically undercapitalized: less than 2% [Link]

When a bank becomes undercapitalized the FDIC makes some noises warning the bank that it better pull its act together or face the withdrawal of FDIC benefits (which would, in all likelihood, mean the death of the bank). When the number drops below 6% the FDIC can change management and force the bank to take other corrective action. When the bank becomes critically undercapitalized the FDIC declares the bank insolvent and can take over management of the bank.

At which point FDIC goes on to either liquidating the bank, or the Purchase and Assumption Method (P&A). The former is a lot less common than the latter, if only because the bank in question, once again, has a say in what happens to it (not to mention that for many financial institutions, buying a failed bank is an excellent financial move; surprisingly). Though, at this point, its financial spreadsheets are likely so deep in the red that with or without the FDIC they would be self-liquidating or selling themselves to the highest bidder. The FDIC only speeds the process along.

In selling an undercapitalized bank off (the P&A method) the FDIC has several options.

It can sell the bank straight off to a bidder, in full; an example would be this.

Or it can create what is called an 'interim' bank that manages the assets with special FDIC oversight (and, importantly, liquidity); an example would be this.

Sometimes, liquidations do happen; an example would be this.

It should be reiterated that at no step of this process are banks somehow 'bullied' into the protective auspices of the FDIC. On the contrary, practically every step of the process is voluntary and backing out of FDIC insurance carries with it no explicit penalties (other than, perhaps, a run on the bank's deposits but that's not the work of the FDIC in any sense of the word). Admittedly, in the last few months or so the FDIC has taken a fine-toothed comb over bank records to see what their real liquidity is; however, on paper, their requirements are basically the same as they've always been.

 

[THE LIGHT]

Good we have too many banks anyway. We only need about 4 to cover the nation.
Better competition that way.

How does fewer banks = better competition???

 

[zzzz]

Good we have too many banks anyway. We only need about 4 to cover the nation.
Better competition that way.

How does fewer banks = better competition???

Did someone mention MONOPOLY?

The government instead of regulating the banks should just nationalize all the banks and form the US Banking Agency under the auspices of the Federal Reserve. Since they print all the money anyway and contol the flow this would eliminate the middle man and provide the government direct control of loans, savings, credit/debit cards and such. I know more government, but here I think it works and may stabilize the financial enviroment a little more. Of course the federal government is not solvent either I suppose.

 

[Douger]

You murkins forgot what your ancestors did.
When their countries went to shit they got the fuck out before it was too late.........some lucky ones, after it was too late.
My suggestion ? GTFOD.
You'd be better off picking coffee in the mountains of Bolivia for $15 a day than living in what is about to come upon you.
NO.
You don't have enough wealth to get through it. Neither does Oprah.

 

[Neubarth]

Republicans are destroying the economy?

I don't understand how either party would have much to do with the FDIC, in its role as a nominally independent regulatory agency, carrying out its basic functions.

Almost all of the banking laws and regulations that allow the banks to fleece the public in good times and allow the investment houses to fleece the public in bad times were set in place by Fat Cat Republicans who largely profit from the legislation. They are going to be running screaming targets of opportunity when the civil war starts. Remember, a Civil War can have many gripes to set it off.

If you thought people hated banks and bankers in the 1930 when Bonnie and Clyde were minor heroes to the public, you can see how a whole nation of middle class workers will eventually say, "I am fed up to here and I'm not going to take it anymore!" Then they will start shooting.

It is coming. How bad it will get I do not know, but you will start seeing signs of it come September, especially if Goldman Sachs tanks the market again as they have been trying to do.

 

[CrusaderFrank]

Republicans are destroying the economy?

I don't understand how either party would have much to do with the FDIC, in its role as a nominally independent regulatory agency, carrying out its basic functions.

He's mocking the Obama 2 Minute Hate on Republicans. Many of the Progressives snort the Kool Aid straight from the can

 

[Neubarth]

Republicans are destroying the economy?

I don't understand how either party would have much to do with the FDIC, in its role as a nominally independent regulatory agency, carrying out its basic functions.

He's mocking the Obama 2 Minute Hate on Republicans. Many of the Progressives snort the Kool Aid straight from the can

In a way, you are correct. Quite frankly, I am apolitical as well as areligious (I will mock any religion because there is lots to mock, but I am still a man who believes in morality and God.). Though, quite frankly, at this time I am pretending to be a strong Liberal as there are too few of them on this forum.

In this case, the Republicans deserve most of the blame for what has happened in the past three years (Well actually for a long time before that, but the malaise is Republican spawn and raised. By the way I usually vote conservative, but that is a result of my Daddy telling me that when it comes to politics, "When in Doubt, Vote No!")

Voting conservative is usually a NO vote on spending programs. When the spending programs come up for a vote with the public (Bond Issues), I usually vote no, too. I have voted NO on every public school bond issue I have ever seen. That is because I am convinced that the government is the most inefficient and ineffective educator in the history of the world. We need to turn education over to private schools where it can be far more cost effective and effective overall. I never had my children in public elementary school. I hired a full time licensed teacher to teach my children because I wanted the best for them. They all went on to be honor students at the very top of their classes. It is amazing how that works.

Our government banking regulation is horrible, just like public schools. We need to totally revise our system and place severe penalties for abuse of same. (I'm talking about death penalties here, just as severe as in Communist China where if you commit a serious felony, they take you out behind the courthouse and put a bullet in the back of your head.)

Population control and felony control all at the same time. Fantastic efficiency.

 

[Intense]

Here is a strange new concept.... Learn to live within your means. Teach your children the same. There is nothing any of us thinks we are entitled to that somebody else is not paying the price for. WTFU.