The OTS has determined that the current institution, IndyMac Bank, is unlikely to be able to meet continued depositors¡¯ demands...The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York...posted by mullacc at 5:00 PM on July 11, 2008
¡°This institution failed today due to a liquidity crisis,¡± OTS Director John Reich said. ¡°Although this institution was already in distress, I am troubled by any interference in the regulatory process.¡±
It's so very good to be a CEO: whatever happens to the company, the CEO always wins, and wins big.You flatly claimed that "wins big" is untrue, and then try to claim that, well hey, you weren't counting the $20M termination clauses. You tried to counter my bitching with a lie and got called out for it. Suck it up, apologist: you lose.
Here's proof that that theory is untrue.
I have 400k, 200k is not insured. They cut me a check on Thurs and I deposited into another bank, but there's a 5 days hold on the check.. Will the fund cleared in 5 days, or i'm in deep sh*t?Someone who would front $200K into uninsured status to chase a minor bank rate advantage over market competitors has a curious approach to risk.
If you have more than $100,000 in your account, or if the total of your related accounts exceeds $100,000, your accounts may require review by an FDIC Claim Agent and you should call the FDIC to schedule an appointment with an FDIC claim Agent. The FDIC will pay uninsured depositors an advance dividend of 50% of your uninsured deposit.posted by dw at 11:18 PM on July 11, 2008
So borrowing from the TAF is counted very much like borrowing from the discount window? What you are telling us then is that banks found it advantageous to borrow $50 Billion from the functional equivalent of the discount window (formerly used only by banks in trouble as there was a perceived stigma) and that this is business as usual?and
The clear purpose of the TAF is to allow banks in difficulty to borrow from the Fed ANONYMOUSLY so as to avoid the stigma previously attached to the discount window (which was not anonymous).
The key quote: ¡°But like the discount window, the money was lent directly to banks rather than primary dealers, and against a wide range of collateral rather than just Treasurys and agency securities.¡±posted by Chuckles at 9:08 AM on July 12, 2008
Yes, my good man, a wide range of collateral rather than just stodgy old low-yielding Treasurys and agency securities. The Fed can make great returns by taking these high-yielding, mortgage-backed CDOs as collateral.
So, the Fed is lowering lending standards¡precisely the behavior that created the subprime fiasco.
The hardcore anti-Fed libertarian types were really rooting for the latter, which could have triggered, at best, a severe recession, and at worst a cycle of deflation that would have dropped us into a depression.Oh, well you go ahead then. Just bail out one group of the irresponsible and the criminal. Oh, you just spread the problem around? Well, a little larger concentric bailout. No one will notice. Oops, now there is nowhere safe in the economy because you have adulterated the money. Okay, just one more bailout. This is the last one. We're going to hit it big, I can feel it. Let's just hope that not publishing the numbers is enough; people are sure incurious lately. I hope you're happy. You've sure saved us all.
Freddie Mac Chairman and Chief Executive Richard Syron pocketed nearly $19.8 million in compensation last year, according to a Securities and Exchange Commission filing Friday, even though the mortgage company's stock lost half its value in 2007.It's time for some goddamn reform.
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The FatWallet thread on this from 7/3 is interesting (and prescient): WARNING: IndyMac appears close to collapse
posted by smackfu at 4:32 PM on July 11, 2008 [1 favorite]