06/07/2009
Joseph E. Stiglitz in Wall Street and the Third World | vanityfair.com
Quote posted at 18:20
Frank Rich in Op-Ed Columnist - Bernie Madoff Is No John Dillinger - NYTimes.com
Quote posted at 17:20
A. Marco in a Finanzas article, translated by Edward Harrison in UBS: ‘The disaster in Spain will continue’ - Credit Writedowns
Quote posted at 15:57
Photo posted at 14:15
Gordon Brown, quoted by Sam Coates and David Charter in Recession may get worse, Gordon Brown warns world leaders - Times Online
Quote posted at 13:04
Judge Robert Gerber of the US bankruptcy court in Manahattan, quoted in FT.com / Companies / Automobiles - Judge approves plan to sell GM assets
Quote posted at 12:04
Kenneth Boulding, Economist (via poortaste) (via financegeek) (via nonolet)
Quote posted at 09:59
05/07/2009
George Hanc in 1999, quoted in Calculated Risk: Failed Banks and Brokered Deposits
Quote posted at 09:00
04/07/2009
I propose a combination of mandatory recapitalisation of the banks and a debt Jubilee for the household sector to remove the two key obstacles to an economic revival. The mandatory recapitalisation would be first through new equity issuance in the market, then though mandatory debt-to-equity conversion and similar haircuts for unsecured bank creditors, and last through increased government equity stakes. All these capital injections should take the form of tangible common equity. Anything else would be cosmetic.
Subsequent regulation of the banking sector (broadly defined to include all highly-leveraged entities with serious maturity and/or liquidity mismatch on their balance sheets) will then be necessary to prevent a recurrence of the disaster we are now struggling through.
„Willem Buiter in FT.com | Willem Buiter’s Maverecon | Quantitative easing, credit easing and enhanced credit support aren’t working; here’s why.
Quote posted at 23:41
European Commission sees permanent decline in euro area’s potential output
Quote posted at 22:40
Henny Sender in FT.com / Markets / On Wall Street - On Wall Street: Banks no longer so lucrative
Quote posted at 21:40
Alessandro Pluchino, Andrea Rapisarda, Cesare Garofalo , quoted by Paul Kedrosky in Solving the Peter Principle? One Word: “Darts”
Quote posted at 20:40
Barry Ritholtz in Asian Officials Push Back Against Savings Glut Theory | The Big Picture
Quote posted at 19:28
FT.com / Wealth - Arne Alsin: The story brokers don’t want you to read (via nonolet)
Quote posted at 13:22
03/07/2009
Bank Failure Thurdsay Extravaganza
The FDIC took advantage of the long weekend. Seven banks were added to the FDIC Failed Bank List:
Founders Bank, Worth, IL — Total deposits of $848.9 million and an estimated hit to the FDIC fund of $188.5 million.
Millennium State Bank of Texas, Dallas, TX — Total deposits of $115 million and an estimated hit to the FDIC fund of $47 million.
The First National Bank of Danville, Danville, IL — Total deposits of $147 million and an estimated hit to the FDIC fund of $24 million.
The Elizabeth State Bank, Elizabeth, IL — Total deposits of $50.4 million and an estimated hit to the FDIC fund of $11.2 million.
Rock River Bank, Oregon, IL — Total deposits of $75.8 million and an estimated hit to the FDIC fund of $27.6 million.
The First State Bank of Winchester, Winchester, IL — Total deposits of $34 million and an estimated hit to the FDIC fund of $6 million.
John Warner Bank, Clinton, IL — Total deposits of $64 million and an estimated hit to the FDIC fund of $10 million.
From the press releases:
The six failed Illinois banks are all controlled by one family and followed a similar business model that created concentrated exposure in each institution. The failure of these banks resulted primarily from losses related to the banks’ investment in collateralized debt obligations and other loan losses.
That explains quite a bit. Illinois just hit 12 closures for the year. Congratulations, Illinois. Also, it looks like the FDIC did a reasonable job this time around.
There is a chance of more closures today, but I’m heading out for the evening. Happy Thursday.
The FDIC might just be the most efficient part of the Federal government. I get surprised every time I have to say that thought out loud.
Text posted at 10:33

