FBI needs to investigate these leaks.
By Daniel at 6 May, 2009, 8:48 am
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I am sorry but unless I am missing something WHEN is the stress test result suppose to come out?
Citigroup $10 billion? BAC $35 billion? JP Morgan $0?
Yes these banks are corrupt, but I think whatever our financial regulators are doing is EVEN MORE CORRUPT.
Citigroup got over $300 billion in assistance.
Goldman Sachs was converted into a bank holding company in a few days so it could receive TARP and use FDIC’s TLGP to sell bonds and raise capital without TARP restrictions. How much premium did GS pay for FDIC’s insurance compared to Wamu or Wachovia or community banks?
As with JP Morgan, check out Maiden Lane LLC. Taxpayers basically gave JP Morgan $30 billion (with a non-recourse loan from the Fed that our Treasury ended up taking over anyways with our tax dollar) and good Bear Stearns assets. Paulson gave JP Morgan $25 billion TARP, which practically paid for Wamu (JP Morgan wrote down $30 billion for that deal). Over 10,000 Wamu employees lost their jobs while JP Morgan planned to buy private jets and build a premier hangar and FDIC called that a “rescue?”
“Treasury will take over Bear Stearns, AIG assets from Fed… totaled $72.21 billion”
http://www.marketwatch.com/news/story/treasury-take-over-bear-stearns/story.aspx?guid=%7B855A56BF%2DE8A1%2D49B5%2DBD95%2D02F6A9A813B2%7D&dist=msr_6
Paulson forced BAC to stick with the MS deal and now the stress test result is leaked about BAC needing $35 billion.
Just like with some of these community banks… it feels like as if our Treasury, OTS, FDIC, and other regulatory agencies want you to fail, they will make you fail with leaks, bank runs, downgrades, etc
FDIC seized Wamu not because it failed, because FDIC thought it was going to fail. Wamu did not fail on that THURSDAY; it had over $4 billion in deposits with a tier I capital ratio, enough to at least last through Friday, if not the TARP votes.
Read also this story about how small banks important to local communities AND taxpayers are getting screwed over by our some of our financial regulators.
““The FDIC says they will lose $191 million because of what has happened, but if they’d waited a few weeks it never had to happen,” said Schauer. “That’s 191 million reasons why this takeover should be undone. Now the losses are incalculable,” she said. “A $35 million loss to our shareholders, the loss of more than 60 local jobs, which is a huge number of jobs for this area, the payroll that won’t be spent here, the taxes that won’t be collected here, the home foreclosures. People here know how much this bank has done for the community, and it’s a calamity for many small businesses.” ”
http://www.newwest.net/city/article/first_bank_of_id_board_member_takes_case_to_dc/C108/L108/
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