Busted: Bankers and The Global Economy

August 30, 2008

FDIC Prepares for Banking Slaughter

The FDIC is seriously considering its future workload by expanding offices in Dallas, Texas that handle banking closures. However, the FDIC is trying to indicate that the 125,000 foot expansion is due to an increase in workload from the failure of ten banks this year, completed yesterday with the closing of Integrity Bank of Alpharetta, Georgia. 117 banks are now on the FDIC trouble list. The FDIC says that “it’s important to note most banks on the problem list will either cure themselves or end up being acquired by another company.” That is true. What is also true is that many failed banks don’t show up on the list at all. The silver lining in the situation is the number of government jobs that will be needed in the Dallas Metroplex area.

The FDIC reports that non-interest income at banks waned as trading and securitization services slowed. That is an understatement to be certain.

Sheila Bair reported: “We’ll be proposing changes to the current assessment system that will shift a greater share of any assessment increase onto institutions that engage in high-risk behavior to encourage and reward safer behavior.” The lack of honest information from banks has been and continues to be the Achilles heel in FDIC efforts. Fraudulent banking is reported as up by corporate information specialists while government regulators play down the significance of fraud and failure. The fear is palpable, but regulators are full of blather in an effort to convey confidence. ~ E. Manning

Check out an interesting article at RGE Monitor.

July 21, 2008

FDIC: Let the Innocent Cast the First Stone

Back in 2001, FDIC employees supervising day-to-day operations of failed bank Superior FSB funded more more than $550 million in subprime loans. According to a recent lawsuit by Beal Bank, who eventually purchased Superior FSB, a significant portion of 5,315 subprime mortgages are non-performing. The FDIC has even bought back 247 of the original loans, priming the pump for their blame. The problem is that the FDIC made the decision to continue to operate the failed bank under the banking monikker, churning out an additional 6,700 subprime loans.

Based on the FDIC’s own report, at least 19% of the loans are fully fraudulent or “contained significant (more…)

July 17, 2008

IndyMac, FDIC Guarantees and Brokered Deposits

The FBI has been on the trail of the subprime mortgage debacle since February of 2007, whether you have heard about that truth or not. They have been ferreting behind the scenes to find the fraud that has tainted the lives of Americans and the global economy. IndyMac is the latest big chunk of fraud that is under investigation, even as the bank folded last week. The FBI is currently examining 21 corporate targets for fraud, IndyMac being one of them. Otherwise, the FBI and the FDIC are keeping details hushed.

Surely, you know the game by now. Denials of trouble are ALWAYS (more…)

June 30, 2008

Good News for Cheated Homeowners?

In a lawsuit in California, U.S. District Judge Lynn Adelman ruled that the Chevy Chase Bank had violated the Truth in Lending Act or TILA, and that thousands of other Chevy Chase borrowers could file suits or conduct a class action lawsuit.

The Truth in Lending Act, a 1968 federal law designed to protect consumers against lending fraud by requiring clear disclosure of loan terms and costs, lets consumers seek rescission, or termination, of a loan and the return of all interest and fees when a lender is found in violation.

The judge also found that cheated borrowers could force the bank (more…)

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