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First Integrity, which had two branches and $55 million in assets, was the fourth FDIC-insured bank to fail this year. That’s one more than during the entire three-year stretch leading up to 2008. Some analysts predict that as many as 150 banks, mostly small and medium-size, could fail over the next three years.
In its role as receiver for failed banks, the FDIC acts as a SWAT team, playing equal parts secret agent, medical examiner, salesman and grief counselor. The first 48 hours are typically the most frantic, as the agency must turn a failed bank inside out and oversee its sale — or its orderly burial.
Secrecy is paramount to prevent a panic among the locals and a run on the bank. That could sink a bank and lead to runs on neighboring institutions. Banks only retain a percentage of their deposits in cash, and use the rest for things like loans, which means they don’t have enough money on hand if everyone demands their deposits back at once. Created after the Great Depression to prevent such scares, the FDIC insures deposits at more than 8,000 banks, covering up to $100,000 per depositor in most cases.
Originally posted by St Udio
reply to post by Pjotr
Prepostetous ! i say,
but thanks for the OP and a chance to try & bring some sane thought to the thread
remember the numbers -> '60' regional or national banks in danger of being insolvent/bankrupt
up to 1,200 total banks, which encompasses the 60 main banks local brick-&-mortar buildings in one's hometown or locale.
a lot of financial institutions will merge or be assimilated by the larger banks, sothats why the '60' number is mentioned---it gives you the real 'scope' of the fiscal problems --- which is actually sort of frightening
because if the FDIC has to insure even a million accounts to the tune of $100,000. each.. the USD will surely collapse to .20 cents on the dollar value in relation to world currencies
[edit on 30-6-2008 by St Udio]
Originally posted by ALightinDarkness
reply to post by housegroove23
In other words, you want a world where everyone believes with your narrowly defined worldview, and are hoping for absolute disaster in order to mold a world where everyone agrees with you. Lovely.
Originally posted by ALightinDarkness
reply to post by Agit8dChop
I'm not sure whats is more sad - that the ATS doom and gloomers are now out in public advertising that they have been hoping/praying for a total catastrophe, or that they believe they can somehow build utopia out of it.
Originally posted by guyopitz
If things go from bad to worse then alot of people will die. and I say let us. we don't deserve this planet.
For seven years, US President George W. Bush refused to allow the IMF to conduct its assessment. Even now, he has only given the IMF board his consent under one important condition. The review can begin in Bush's last year in office, but it may not be completed until he has left the White House. This is bad news for the Fed chairman.
When the final report on the risks of the US financial system is released in 2010 -- and it is likely to cause a stir internationally -- only one of the people in positions of responsiblity today will still be in office: Ben Bernanke.
A year ago, the Bank for International Settlements startled the financial world by warning that we might soon face challenges last seen during the onset of the Great Depression. This has proved frighteningly accurate.
Shares of Pasadena-based IndyMac slipped by 19 cents today, which would be no big deal for most stocks. But IndyMac is a penny stock these days, so a loss of less than two dimes a share wiped out roughly a quarter of its value. It closed at 62 cents a share.
Over at Money & Co., Tom Petruno details the near-run on the bank Friday and Saturday, as investors lined up to pull their money out of the bank, which has been battered to the brink of survival by bad loans. As Petruno explains, Sen. Charles Schumer (D-N.Y.) didn't do IndyMac any favors when he wrote to federal regulators saying he was "concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and...