Here is an interesting story from Reuters about the bank bailouts.
Now I was against the bailouts as much as anyone, I will admit The story says the bailouts of the banks is working and that the government is actually making money off interest from the loans.
I have mixed feelings. But Im sure the Republicans will show us how its all a lie and that we are still all going to die in the economic crash that obama caused. And then the Dems will explain how its all Bush's fault.
It is interesting to read and or hear other news sources. When I was in Holland I watched the news. News about the U.S. was different than what we get here. There really wasnt any political spin, it was just an observer telling a story.
Truth is truth.
Bailout $ is sitting unused since no one will buy the debt. Not even the Chinese. Oct. will be 2 years ago. Remember how much of an emergency it was ?
ReplyDeleteRead the story. Most of the bailouts have been paid back and the feds made money on the deal.
ReplyDeleteDo you have any documentation that ANY of the money for the bank bailouts was unused?
Most of the money has been paid back. The feds made a profit off the interest.
I dont like it any more than you do cause i hated the bailouts, but the truth is, it worked and it actually reduced the federal deficit just a bit.
You are soooo right, JJ. Fact IS fact. GOP will never accept that. To them, facts are only spin. (unless the facts come via Foxnews, ironically,)
ReplyDeleteYou know, its a good rule of thumb, that if someone has to tell you they are telling you the truth -- they probably aren't.
ReplyDeleteSame thing goes with news. If the news source has to tell you they are being "fair and balanced" or that they have a "no spin zone" ... its probably not true.
"Read the story. Most of the bailouts have been paid back and the feds made money on the deal."
ReplyDeleteYou cannot possibly naive enough to believe that. That's like when GM went on TV and said they had paid back their loan in full when they had done no such thing. All they did was sell equity in the company to the government.
http://blog.heritage.org/2010/04/23/a-full-10-of-general-motors-bailout-paid-back/
http://wallstreetpit.com/4928-treasury-ten-banks-eligible-to-pay-back-tarp-really
ReplyDelete"For all of the weeping and gnashing of teeth about TARP and other government bailouts, so far so good right? Well, yes and no, assuming $68 billion will indeed be paid back, it does represent a sizeable chunk of the U.S. investment in banks. However, there is still a massive amount still tied to struggling financials through both direct investment in preferred shares and guarantees against losses. Some of the largest and most important banks are notably note included in this list of “re-payers”; namely, Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC). Bank of America and Citi have been the biggest drags of the financials thus far and everyone expected them to be on a little less stable foundation right now, but Wells Fargo has been heralded as one of the best managed through the crisis."
http://www.washingtontimes.com/news/2010/jul/7/us-marks-3rd-largest-single-day-debt-boost/
ReplyDeleteThe one-day increase for June 30 totaled $165,931,038,264.30 - bigger than the entire annual deficit for fiscal year 2007 and larger than the $140 billion in savings the new health care bill will produce over its first 10 years. The figure works out to nearly $1,500 for every U.S. household, or more than 10 times the median daily household income.
Daily debt calculations jump and fall, and big shifts are common. But all three of the biggest one-day debt increases have occurred under the tenure of President Obama, and all of the top six have been in the past two years - an indication of just how quickly the pace of deficit spending has risen under Mr. Obama and President George W. Bush.
Well you also need to consider where all those toxic loans went from the Banks who are now paying back their bailouts!
ReplyDeleteYou got it - Freddie and Fannie!
(You surely know who owns them!)
They were just recently delisted from the NYSE and moved to the PINK SHEET - over the counter!
You care to guess how many billion they are in the hole?
Some of that debt never left it just got moved around!
from daily finance.com
ReplyDeleteEven though U.S. taxpayers now own most of Fannie Mae (FNM) and Freddie Mac (FRE), the fact that shares of the mortgage giants still traded on the New York Stock Exchange always provided a faint hope that one day they would pay back the billions of dollars they lost making bad bets on home loans.
But shares of Fannie Mae, which hit $89 less than a decade ago, fell below the required minimum of $1 a share this week, so both firms ended their listings on the exchange Wednesday. What's not ending is the huge mountain of unpaid bills that could saddle taxpayers with up to $1 trillion in bad debt.
Fannie and Freddie together guarantee about $5 trillion in single-family home mortgages, about half the total outstanding, according to the Federal Reserve. Since the government seized the companies in September 2008, and placed them under a form of bankruptcy called conservatorship, taxpayers have been on the hook for any shortfall in capital. When mortgage borrowers don't pay -- $340 billion in loans were past due in March – Fannie and Freddie must absorb the losses.
Another Leak That Can't Be Capped
The government has already spent $140 billion providing capital to the two companies. How much more they'll eventually require is anyone's guess. Combined they lost $94 billion in 2009 and $18 billion in the first quarter, leading to the collapse in their share prices. Leaving the NYSE won't hurt the companies -- it's just another confirmation of how dire their financial situation has become.
Sean Egan, principal at Egan-Jones Ratings, a Philadelphia-based ratings firm, says he thinks losses on the firms' loan portfolios could top $1 trillion. "Our view is that a reasonable worst case is about 20% of the $5 trillion exposure," he says. He points to the fact that Merrill Lynch sold a portfolio of poorly performing mortgage debt to a Texas firm called Lone Star in July 2008, for $6.7 billion, at a loss of 78%.
"This is similar to the BP oil spill -- they can't cap the leak," says Anthony B. Sanders, a professor of real estate finance at George Mason University in Fairfax, Va. "This makes the oil spill look like small potatoes."
Fighting Only Half the Fight
The problem is that no alternative plans exist to halt or even slow the losses from Fannie Mae and Freddie Mac. While the Obama administration has proposed a sweeping overhaul of the financial services industry, which is being considered by a congressional conference committee this week, the proposal doesn't include Fannie or Freddie. The administration, which had promised a rescue plan in February, now says a proposal won't be ready until next year.
"Overhauling the banking system without fixing Fannie and Freddie is like fighting terrorists without attacking the jihadi ideology motivating them," Investors Business Daily said in an editorial Monday.
Last week, the House blocked a Republican proposal to end the conservatorship of Fannie and Freddie within two years. Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, argued that because the two firms weren't taking losses on new loans, the measure wouldn't save taxpayers any money.
Wallison says he's concerned that Congress will avoid dealing with the issue by simply reconstituting Fannie and Freddie and giving them new oversight. He says bank regulators had failed miserably and can't be counted on to save the mortgage giants. Fannie and Freddie may be delisting their shares, but they're not going away anytime soon.
See full article from DailyFinance: http://srph.it/9Z2GYF
-------------------
Isn't a trillion more than the total of the original Bailout package?
(Btw: I couldn't post the whole article! So it is posted in parts!)
you wouldn't know the truth if it bit you in the ass jordan!!!!!
ReplyDeleteQuit drinking the kool aid JJ.
ReplyDeleteRCB Bank Purchases Home National Bank
ReplyDeleteRCB Bank Purchases Home National Bank
Locally-owned RCB to extend branch network into Kansas, Arizona and 4 new communities in Oklahoma.
CLAREMORE, OK – RCB Bank has reached an agreement with the FDIC to acquire Home National Bank deposits in Oklahoma, Kansas and Arizona. The acquisition includes 11 branches in Kansas and Oklahoma as well as 4 branches in Arizona. The newest RCB Bank locations will serve customers in Scottsdale and Phoenix, Arizona, Arkansas City and Winfield, Kansas, as well as Bartlesville, Blackwell, Ponca City, Shidler and Stillwater, Oklahoma.
The acquisition includes all of Home National Bank’s approximately $500 million in deposits and $130 million in loans in Oklahoma and Kansas.
“We are excited to bring Home National customers into the RCB Bank family” said Roger Mosier, President and CEO of RCB Bank. “RCB Bank has always been known for our conservative banking and business practices, which is what made this acquisition possible. We believe that the customers and employees of Home National Bank will greatly benefit from our community-first culture and full line of banking products and services.”
The acquisition extends RCB Bank’s branch network to 25 locations across Oklahoma, 5 locations in Kansas and 4 locations in Arizona.
“We’ve had a loan production office in Wichita for several years now and the additional Kansas locations prove a commitment to our growth and expansion into those communities in southern Kansas,” said Mosier. “Additionally, we are strengthening our position in communities across Oklahoma, while giving our customers more branch locations for easier and more convenient banking service.”
Upon closing of the acquisition, RCB Bank will have assets of approximately $1.9 billion with 35 locations across Oklahoma, Kansas and Arizona.
# # #
From the RCB Bank Website
@9:07 - What a nice way to polish a turd.
ReplyDeleteHowever they want to spin it, this was a bank failure. They were shut down by the Feds, and taken over by RCB
Failed Bank Information
ReplyDeleteInformation for Home National Bank,
Blackwell, OK
I. Introduction
On Friday, July 9, 2010, Home National Bank, Blackwell, OK was closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information, which should answer many of your questions.
VII. Possible Claims Against the Failed Institution
Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. If you or your company provided a service or product, leased space, furniture, or equipment to Home National Bank after Friday, July 9, 2010 and have not been paid, you do not have a claim against Home National Bank. Please follow your normal billing procedures by providing an invoice as instructed.
If you or your company provided a service or product, leased space, furniture, or equipment to Home National Bank prior to Friday, July 9, 2010 and have not been paid, you may be entitled to a claim against the bank. If you provided a product to or a service for Home National Bank prior to the bank's failure for which you have not been paid and you have not received communication, please contact:
Federal Deposit Insurance Corporation
Receiver: Home National Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent
All shares of Home National Bank were owned by its holding company, HNB Corporation, Arkansas City, KS. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of HNB Corporation, please do not contact or file a claim with the Receiver. You may contact HNB Corporation directly for information as follows:
HNB Corporation
126 Summit Street
Arkansas City, KS, 00000
1-620-442-4040
9/2010 cservicefdicdal@fdic.gov
see there, you CAN get useful information from blogs. I didn't know that bank info.
ReplyDeleteNotice that the local print news failed to note that the bank was closed by the FED, they failed, to put that in their breaking news and they failed to tell the whole story most of the time.
ReplyDelete