"Almost 10 % of FDIC-Insured Banks Troubled"

A story from "Marketwatch" on the troubled FDIC bank system, and why commercial real estate, is going to be the driving force behind this continued collapse. With supposed run's on the banks in Greece, and all the other difficultie's throughout the world these day's, we are sure in for an interesting ride, it seem's....






www.marketwatch.com...

Here is the "CNN" article on the same issue...

money.cnn.com...



[edit on 23-2-2010 by freetree64]

Well, if you consider the fractional reserve rate requirement it is sensical to assume the FDIC is only reporting 10% of all the troubled banks, meaning 100% of our banks are "troubled."

Remember the bank stress test last year? The results seemed to indicate that all but 3 (IIRC) of the top 20 banks tested were in serious jeopardy and already well beyond simply being "troubled." What was the official report from the same general folks who released this 10%? "Oh, all the banks passed the test and we just have a couple of them we are going to require to increase capital a bit as a cushion. Have no fear!"

If the FDIC, Fed, Treasury, etc told me water was wet I'd have to verify it for myself before I believed it.

reply to post by burdman30ott6


Just don't try to walk on it (water) I think thats what the banker's and elite are doing right now......

Misery loves company. Things could no doubt get worse.

Retire? You can fuggetaboutit if the new Global Debt Time Bomb is detonated by any one of 20 made-in-America trigger mechanisms.

Yes, 20. And yes, any one can destroy your retirement because all 20 are inexorably linked, a house-of-cards, a circular firing squad destined to self-destruct, triggering the third great Wall Street meltdown of the 21st century, igniting the Great Depression II that George W. Bush, Ben Bernanke, Henry Paulson and now President Obama have simply delayed with their endless knee-jerk, debt-laden wars, stimulus bonanzas and bailouts

www.marketwatch.com...

reply to post by freetree64


The FDIC insures "accounts", not banks.

reply to post by jam321


That was a good article. Kinda weird, this stuff can happen at pretty much anytime now. The thought of going to sleep, then waking up in a totally different world is pretty much a possible if not probable reality now.

reply to post by pumpkinorange


Hey, I didn't write the article, I just posted it.....geez

Originally posted by LegalizeFreedom
The thought of going to sleep, then waking up in a totally different world is pretty much a possible if not probable reality now.

I couldn't agree more LF...but in certain respects , the more things change...the more they remain the same.

Banks need to replace 15 - 20 billion per annum. Of course trimming bonus pools to address this shortfall is out of the question (Citigroup 5.3 billion..Goldman 22 billion...the list goes on).

Solution: Target the cash-strapped underclass.


Snips:

Banks May Use Payday-Style Loans to Replace Lost Overdraft Fees

Feb. 23 (Bloomberg) -- U.S. banks may expand their short- term lending at interest rates of 120 percent or more as they seek to replace more than $15 billion in lost revenue because of regulations limiting overdraft fees.

The banks don’t call the advances payday loans because it’s a “very tarnished, negative brand,” said Rowe, who estimates U.S. banks may lose from $15 billion to $20 billion in revenue when Federal Reserve rules take effect July 1. The rules will prohibit banks from charging overdraft fees at automated teller machines or on debit cards unless a customer has agreed to pay for exceeding account balances.

For consumers, getting a short-term, high-interest loan from a bank might be worse than going to a payday store, said Lauren Saunders, managing attorney with the National Consumer Law Center in Washington. A bank has direct access to consumer accounts, meaning its loans will be paid off first, ahead of food, housing or utilities, she said.

Payday loanshark rep gets territorial...calls foul , claims banks have unfair advantage. Exploitation of the financially distressed should be conducted on a level playing field

Unfair Competition

National banks making payday-type loans unfairly compete with payday loan stores because they’re exempt from state laws limiting interest rates, said Steven Schlein, spokesman for the Community Financial Services Association of America, an Alexandria, Virginia-based trade association, which represents payday lenders. National banks like Wells Fargo, U.S. Bancorp and Fifth Third are federally regulated, while payday lenders are overseen by the states.

“What the banks are doing are payday loans,” Schlein said. “Let’s have everybody operate under the same system.”

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