The FDIC is increasingly looking like the candidate to run the ‘bad bank’ that would help to unwind bad assets still on bank’s books. This was the original intent of the TARP: FDIC Chairman Sheila Bair is pushing to run the operation, which would buy the toxic assets clogging banks’ balance sheets, one of the
Sheila Bair
Amazon.com WidgetsThe Obama Era starts this week with a lot of tears and idealism and hope. We don’t discount the historical magnitude of Obama’s win, and in fact, we’re a bit caught up in the moment right now as you can see by our Obamafied logo in the rotation. But to those who are looking
Two banks were seized by the FDIC Friday, continuing a trend that started last year with 25 bank failures. Click the FDIC tag below for more coverage of the FDIC’s strategy in an environment where so many bank failures threaten the viability of the FDIC. Under the leadership of Sheila Bair, the FDIC’s strategy is
After failing and being seized by the FDIC earlier this year, Indymac is now on the block to be bought within 90 days. The FDIC has taken on the role of investment bank as the bank failures mount. After the Indymac failure depleted the FDIC fund, FDIC head Sheila Bair took on a new approach,
Twenty-two banks have failed so far in 2008. After Indymac failed in July, which was the largest of the year at that time, the FDIC saw that their reserves for taking over failing banks were going to disappear in a hurry. So they started acting as investment bank of sorts by brokering deals where they’d
Downey and Two Other Banks Seized by FDIC Over the last few years, Downey Savings bought its share of loans from brokers. They were seized Friday. They, along with PFF Bank & Trust (Pomona, CA) were taken over by U.S. Bancorp. Downey is the third largest bank to fail this year, and US Bancorp has
Downey Financial, a Newport CA based savings and loan, was seized by the FDIC Friday and sold to US Bank in a deal the FDIC brokered. As of October 22, Downey’s loans no longer collecting interest were 15.7 percent of bank assets. Most of these bad loans were from their portfolio of about $7 billion
If you’re a skilled mortgage professional, don’t ever let anyone tell you that you don’t have options in life! “Your time is now!” Congress Probes TARP Plan: Bernanke, Bair, Paulson Someone wrote to me and said that, “I’m hearing that Treasury is about to announce its support for another vital industry through a new vehicle
Treasury Interim Assistant Secretary for Financial Stability Neel Kashkari Remarks on GSE, HOPE NOW Streamlined Loan Modification Program Stabilizing our financial system will require not only strengthening our financial institutions so they are able to lend to our communities, but also helping homeowners avoid preventable foreclosures. As Secretary Paulson has repeatedly said, there is no
As reported last week, the FDIC was rumored to be working toward helping banks solve the growing problem of foreclosures by enabling banks to forgive principal on loans for homes where values have dropped. About 12 million homes are underwater—that is, the mortgages on about 12 million homes are more than the values of these
As foreclosures continue to rise—foreclosures have nearly tripled to 80,000 in California during the last three months—the government is trying to do all it can to help lenders figure out how to keep people in their homes. The latest is that the FDIC is trying to create a loan guarantee program that would incentivize lenders
Today Treasury Secretary Henry Paulson announced that about $125b of the $700b bank rescue package would be allocated to nine banks, which is a much more direct and aggressive recapitalization plan than the original approach of handpicking illiquid MBS to purchase from banks. Below are the banks involved and the amount they’re expected to receive:
Who says investment banking is deal. The new deal brokers on The Street are the Fed, Treasury and, increasingly, the FDIC. Under Sheila Bair, the FDIC’s role in the credit crunch is getting larger and larger. When Indymac went down, it caused great concern that the FDIC’s industry-funded deposit insurance fund would quickly be depleted
JP Morgan Chase is the big winner in the market carnage.