Banks in Calif., Ill., Fla., Texas are shut down-

Discussion in 'Wall St. News' started by schizo, Feb 19, 2010.

  1. schizo


  2. the1


    No, the Feds don't give a shit about these little banks because their failure doesn't bankrupt the Federal Reserve. If enough member banks of the Federal Reserve failed the Fed would cease to exist. What the Fed did was indirectly bail out themselves. These little fish are nothing worth worrying about. One less bank at the discount window.
  3. I like how everyone ignores the fact that most of the banks the government lent money too have already paid it back with interest.
  4. schizo


    So why not lend the same money to these small community banks at 0% interest until they're able to get back on their own two feet? C'mon, let's level the playing field for once.
  5. Most of those small banks if not all were heavy into the local construction loan business. Tons of lending for commercial development, residential construction. Construction loans are kept on book and when the builders went under that got hurt.

    They were allowed to go under because their failure didn't extend much beyond the local communities.
  6. schizo


    You brought up a good point, which not coincidentally strikes at the heart of the current mess. Instead of doling out trillions of dollars to prop up the zombie banks, had Uncle Sam transferred the toxic asset from Wall Street to the community banks all across the nation at deep discount (like 10-cents on the dollar), the problem would have been cured overnight. It would then have become a localized problem that would be far easier to contain from spreading out of control. As the economy rebounds, the profit would be reinvested in the community and not the Wall Street.

    Just what the hell were these idiotic economists thinking?
  7. And you conveniently ignore:

    - The trillion plus dollar Fed purchases of crappy loans

    - The FDIC backing of these large banks that speculate

    - The AIG bailout pass-thru of billions

    - Special tax breaks

    - An engineered stock market rally that allowed these big banks to issue new shares

    - the backstopped and cheaply funded "merger" like BAC and MER and JPM and Bear

    - FASB changes that allows banks to model their balance sheets according to a fantasy world.

    Gee... I wonder if any or all of the above contributed to the paying off of the loans you mentioned and subsequent high bonuses. How convenient.
  8. Banking consolidation, bigger banks eat up little banks. nothing more.
  9. wmb


    REALLY... stop being a sheeple! Goldman sacs ,citibank, aig, ms, even those 2 deadbeats lehman, bear stearns owe money. What are you reading about. the Lord blankefien pep talk! Oh i bet you really are working for GS publicity department!
  10. patoo


    I love the fact you have no idea what is going on

    The Feds bailed out all of them. A bunch of AIG's money went to Goldman which declared record profits.

    They all say they are making profits again with stinky balance sheets.

    A-N-D they are still doing the same shit they were doing to cause the bailout in the first place.

    The taxpayers may eventually get paid back 100%..but not yet, buster!

    They need to break up BAC Citi, et al

    Too big to fail, my sweet aunt!
    #10     Feb 20, 2010