Busted: Bankers and The Global Economy

May 28, 2009

Investors Afraid of Bailout Involvement

Filed under: banking, economy, government, money — Tags: , , , , , , , , , , , , , — digitaleconomy @ 10:41 am

toxic debtTo cleanse bank balance sheets of distressed loans, other unwanted assets and “reduce the associated market overhang”, the FDIC and Treasury launched the Legacy Loans Program. Now the plan has stalled and is likely to put be on hold, terminated or modified again as stifled feds puzzle over their dilemma.

The Legacy Loans Program as crafted by the Federal Deposit Insurance Corp is part of a $1 trillion Public Private Investment Program announced back in March. This program was theoretically designed to encourage banks to sell securities and loans weighing down balance sheets to willing investors. Many banks, flush with bailout cash, have gained a feeling of stability with previous government bailout and have become less eager to be involved in the Legacy program.

Prospective buyers and sellers are reluctant to be involved in such an endeavor and have voiced their concerns to the FDIC about participating. The majority are fearful that the federal government will change program rules in the ‘middle of the game’. Investors are also fearful of financial backlash from an overall hostile attitude against Wall Street.

Bailout ideas simply don’t seem to be working in the realm of public opinion and scrutiny. Even investors don’t want to be attached to the crooked banking mess that the bankers have created. ~ E. Manning


January 30, 2008

Swiss Banking and Credit Woes

Filed under: banking, federal reserve, investment, money — Tags: , , , , , , , , , — digitaleconomy @ 5:32 am

UBS is among the hardest-hit of the banks around the world that have collectively suffered more than $100 billion in losses from the crisis originating from defaults in U.S. subprime mortgages.

Globe Investor 1/30/2008

International Herald Tribune 1/30/2008

If you have read any of my commentary, history or articles, you are aware of the importance of Swiss banking as well as its role in the world banking system. UBS is a major hinge of the international banking community and is tied into the private banking sector as well with secret investors and ties to the Roman Bank. Because of this role and the power of Swiss banking, the news of this article should cause bankers and investors great concern. UBS has an extensive holding of pensions and other commercial financial holdings that impact the retirement community. The fact that UBS has made the error of investing so heavily in U.S. subprime mortgages is oversight on their part. The real concern is the impact that continued hits will have on existing strongholds in the corporate finance, insurance, pensions and reserve funds of all kinds. All these funds are at additional risk because of this recent bad investment write-off. ~ E.M.

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