SubscribeAll Posts Tagged With: "FDIC"
Fun and Games at the FDIC
Time: On Tuesday, the cash-depleted FDIC hatched a plan to require banks to prepay three years of quarterly fees. The FDIC expects to quickly generate $45 billion in cash, an amount it normally would’ve had to wait years to get its hands on. But in a quirk of accounting rules, the banks won’t have to expense the upfront payments this year, even though they will be handing over the cash in the next few months — in amounts that could run into the billions of dollars for some banks. The FDIC says the move will solve its liquidity problems — the…
5Oct2009 | The Real Deal | 0 comments | ContinuedIs The FDIC Out Of Money?
More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.
The number of banks exceeding the threshold more than doubled in the year through June, according to data compiled by Bloomberg, as real estate and credit-card defaults surged. Almost 300 reported 3 percent or more of their loans were nonperforming, a term for commercial and consumer debt that has stopped collecting interest or will no longer be paid in full.
The biggest banks with…
17Aug2009 | The Real Deal | 1 comment | ContinuedCDARS Accounts: How To Protect Your Assets From FDIC Insurance Limits
As regular readers know, I have a passion for nearly all things hunting and fishing. For the last nine years or so, I’ve been fortunate to be one of just 30 members of one of the oldest and most prestigious hunting and fishing clubs in the United States. Formed in the early 1890s, our 3,800-acre playground in northeast Pennsylvania is teeming with wildlife.
Roughly two-thirds of our membership is retired, many like myself at a relatively young age. Many accumulated their wealth in ways you might expect: lawyers, doctors and investment bankers. Several come from wealthy families, and are responsible for…
24Jul2009 | Investment U | 1 comment | ContinuedThe Next Big Disaster Will Be Insurance Stocks
A major North American life insurance company will fail this year…
I’m talking about AFLAC, Ameriprise, Hartford, MetLife, Prudential, or another familiar insurance provider, possibly the one that holds your life insurance policy. At least one of these companies is going under very soon. Let me explain…
Insurance companies have been the largest purchasers of corporate debt every year since the 1930s. If Berkshire Hathaway and its financial fortress balance sheet can be downgraded from triple-A status (by Fitch Ratings last week), you should assume a great swath of investment-grade corporate debt is in imminent danger of being downgraded to junk.
Here’s the…
19Mar2009 | Stansberry and Associates | 1 comment | ContinuedFDIC Needs Bailout
The existing $30 billion credit line “provides a thin margin of error” to cover losses from bank failures, Bair wrote yesterday in a letter to U.S. Senate Banking Committee Chairman Christopher Dodd. Dodd, a Connecticut Democrat, plans to introduce legislation to raise the borrowing authority to a permanent level of $100 billion and temporarily increase it to $500 billion through Dec. 31, 2010.
The assessment was aimed at rebuilding a fund the FDIC uses to repay customers for deposits of as much as $250,000 when a bank fails. The fund, drained by 25 bank shutdowns last year, fell to $18.9…
Credit Crisis Update: An Inside Look at the Commercial Paper Debacle
By Shah Gilani
Money Morning
The commercial paper market is the thoroughfare where Wall Street merges into Main Street. Corporations, finance companies and banks rely on Main Street investors for the cash they deposit into money-market funds and other short-term investment vehicles. Ultimately, that cash buys the commercial paper that’s issued to help fund everything from corporate payrolls to a manufacturing company’s production inventory.
The deepening credit crisis – with its inevitable contagion spreading like a nuclear winter across the globe – is forcing the U.S. Federal Reserve and central banks worldwide to go to extraordinary measures in their attempts to thaw out…
9Oct2008 | Money Morning | Comments Off | ContinuedIgnore the Economic Reports, Even if You Can’t Ignore the Pain
The economic releases now (and for the immediate future) will be weak – that’s a given.
Therefore, investors should give them a passing glance, evaluate the consequences and potential remedies, and move on. In fact, the bigger picture should focus on how to correct these assorted problems.
Expect plenty of over-analysis of the provisions of the revised bailout plan, as “experts” debate the merits of the overall terms and try to determine if – and how – the bailout plan will work – and who it will benefit. (Does anyone in Congress even understand mark-to-market accounting?)
Story continues below…
|
Sign up right now, and… |
Credit Crisis Safety Plays: How to Make Sure That Your Bank Deposits are FDIC Insured
With evidence mounting by the day that the banking industry may be in deeper than it admits, many investors are wondering what the Federal Deposit Insurance Corp. (FDIC) actually does and how it will protect them.
This question becomes even more crucial now that, under the proposed banking-sector rescue legislation that was passed by the Senate Wednesday night, the individual cap on the level of government-guaranteed deposits would be raised from the current $100,000 to the new level of $250,000.
Let’s take a look at what the FDIC is and does, and outline how it’s supposed to function. There are also two steps folks…
3Oct2008 | Money Morning | Comments Off | ContinuedStakes are High as Bailout Strides to Clear House and Senate
The United States Senate was set to vote last night (Wednesday) on a $700 billion bailout plan that is slightly different than the one that the U.S. House of Representatives rejected on Monday. Many analysts anticipate this bill will pass after the Dow Jones Industrial Average’s 778-point drop Monday provided very tangible evidence of the precariousness of the U.S. economy.
The Senate vote was scheduled to start after 7:30 p.m. EDT, last night. The hope is that the House of Representatives will then be ready to take action on this new bailout bill version on Friday, said Brendan Daly, a spokesman…
2Oct2008 | Money Morning | Comments Off | ContinuedBailouts, Politics, & Wall Street
While politicians played politics, markets moved. Money raced out of stocks ($800 billion in equity was wiped out on the S&P alone today) and commodities and into ’safety havens.’ Those havens were treasuries and gold…ironic if you think about it. In the mean time, the bailout stalled, as the last batch of conservatism has prevailed and looks to hold true until Thursday (The Jewish holiday Rosh Hashanah will prevent another vote until Thursday at the earliest).
At this point, I don’t mind going out on a limb to say this: members of Congress are terrified of how markets reacted to the…
30Sep2008 | Oxbury Research | Comments Off | Continued
Loading ...
