“The issue regarding the possible special 20 basis point one-time assessment by the FDIC of all insured banks is in a state of flux. On Wednesday of this week, The US Senate passed Senate Bill 896, which may significantly reduce the one-time assessment of banks by the FDIC. It is nearly certain the Senate bill will be approved in the House of Representatives and sent to the President for his signature. The bill also features an extension of the $250,000 FDIC insurance limit through 2013.”

“You can tell your customer we are very supportive of the Senate bill and believe that the higher FDIC insurance limits are critical to the success of any bank in this difficult environment.”

SB 896 has passed the Senate and its companion bill HR 1106 in the House is awaiting action.

Sec. 204 of HR 1106 references FDIC but I can’t tell if that is the mitigating language that would lessen the impact of the special assessment on banks. I’d appreciate your take on this.

Links to the two pieces of legislation:
http://www.thomas.gov/cgi-bin/bdquery/z?d111:SN00896:|/bss/111search.html
http://www.thomas.gov/cgi-bin/bdquery/z?d111:HR01106:|/bss/111search.html

If some of our financial regulators actually focus their resources on proper supervision and receivership management of troubled banks instead of power grabbing, maybe our tax dollars, jobs, and projects would have been saved and not wasted.

FIRST BANK OF IDAHO-

“First Bank of Idaho Board Member Takes Case to D.C.

‘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/

“[L]ocal newspapers learned of the Cease and Desist order and announced it to the community (the bank did not release this information, which means that government agencies probably “leaked” the news of their own actions). The only possible result of leaking this information would be to prevent the bank from saving itself.”
http://www.sunvalleyonline.com/news/article.asp?ID_Article=6807

Of course there was the leak that led to Wamu seizure on a Thursday instead of the normal Friday. Why doesn’t FBI investigate that and all these cases and subpoena officials to find out who gave out insider information?

“FDIC faulted in four bank failures in ’08… The Federal Deposit Insurance Corp. fell short in correcting deficiencies at four U.S. banks before they were seized last year at a cost of almost $1 billion to the deposit insurance fund, the agency’s inspector general said.” I am shocked at the absence of reprimand as well as the little media coverage on such costly mistakes. http://news.cincinnati.com/article/20090408/BIZ/904080305/1076/BIZ

Taxpayers are getting screwed over big time too.

Banks such as Goldman Sachs and JP Morgan can raise money via FDIC’s TLGP to avoid TARP restrictions such as those on executive pay and bonuses.

They can also sell their junk soon with FDIC financing up to $500 billion for PPIP.

I don’t understand why nobody is regulating FDIC. Is it that hard to see Sheila Bair is completely out of control?

Let me again summarize how corrupt this regulator has been:

-FDIC has $19 billion
-FDIC is using that $19 billion to guarantee over $4 trillion in deposits (our hard earned CASH)
-FDIC’s TLGP has so far allowed banks to raise over $300 billion without TARP restrictions
-Sheila Bair said FDIC may be insolvent this year and she said on Bloomberg she would not use our tax dollar to help solve this problem. Well, she lied. Two days later instead of raising FDIC bank fees, she said she would reduce those charges if Congress were to increase her borrowing power to $100 billion
-The Depositor Protection Act of 2009 will now give her $500 billion, requiring approval pretty much from only Bernanke, Geithner, and Obama; even before she gets this money she already said FDIC would finance up to $500 billion for PPIP. Wait, isn’t this bill called the “Depositor Protection Act?” Where is she going to get $500 billion for PPIP and who gave her the authority to committ so much money for Geithner’ plan?
-No, she does not care about homeowners. Google and you will find plenty of stories about FDIC just seizing banks but ignoring people and projects negatively affected by the demise of their banks; FDIC has failed to focus its resources on protecting deposits and MANAGING PROPER RECEIVERSHIP. As to her loan modification program, what does FDIC have to do with that? Besides it is unfair to taxpayers because it does not differentiate between those who are responsible but default (due to current hard times) and those who can’t afford these homes in the first place.
-Bair advocated the bad bank idea.
-Bair found stricter regulaton of derivatives unnecessary when she was the head of CFTC
-Bair tried to sell Wachovia to Citigroup, the recipient of a $300 billion bailout just one month later
-Bair failed to coordinate with SEC and WB investors lost millions that morning because of this horrible deal
-Bair seizd Wamu on a Thursday evening because of a leak; she should be subpoenaed and reveal the person responsible for this leak that wiped out, again, millions of investments; by the way, check the OTS report etc… Wamu did not fail
-Also with Wamu, Bair destroyed the bond market
-Also with Wamu, Bair made derivative holders superior to bondholders… remember AIG?
-Also with Wamu, Bair practically wiped out all liquidity and lending worldwide; for example, European Central Bank’s daily deposit increased from $0.9 billion to an ASTONISHING $169 billion… There is NO MONEY to lend!!! (see Fed paper; link below)
-Sheila Bair misled taxpayers when she said toxic asset program may in fact be profitable and benefit the public; check FDIC’s website and you will see that in their own auction they were getting about $0.5 on the dollar
-Bair said big banks are bad; she lied again. She was the one who rejected Wachovia’s plea to stay independent and sold Wamu to make JP Morgan too big to fail.
-FDIC voided contracts with Wamu landlords who now will lose their buildings because there is no rent income
-FDIC was sued by former Wamu employees (I dont believe these are the corrupt managment, just regular workers) for breaching their severance contracts

Yes, thanks to Sheila Bair and FDIC, we now must fight for our deposits against bank bondholders and legacy asset participants.

Thanks to Sheila Bair and FDIC, over 10,000 Wamu employees lost their jobs and savings while JP Morgan buys 2 private jets and builds a premier hangar.

All Sheila Bair cares about is power grabbing. FDIC did not have enough funds for Wamu so it seized a bank that did not fail but FDIC thought might fail and destroyed jobs and savings across the United States.

You can all google and uncover her inconsistent statements and actions.

I am personally fed up and disgusted with Sheila Bair and how she has destroyed FDIC’s main mission to protect our savings.

http://www.newyorkfed.org/research/conference/2009/cblt/interbank_market_HHH_jan09.pdf
http://zerohedge.blogspot.com/2009/04/exposing-utter-hypocrisy-of-fdic-and.html
http://seekingalpha.com/instablog/387205-ppy/824-time-to-power-check-fdic?source=new_post

*imho*

I’m not sure how much closer one can keep one’s enemies than appointing them as Secretary of the Treasury or giving them the lead spot on the economic team. The more likely problem is that either Obama does not see the likes of Geithner as enemies or his supporters have misjudged who his real friends are.

Bizarro Robin Hood strikes again…