if the story is close to reality. Then those hot money flows will be gone in a flash. This would leave the bank with a gaping hole.
You would be pretty foolish to knowingly leave your money in a bank that is about to fail.
So here is my prediction worth about 0.192 cents US, this bank will be taken over by the FDIC friday.
U.S. consumers borrowed more than twice as much as economists forecast in June as a decline in home equity forced Americans to fund purchases with credit cards and other loans.
I think we're on the cusp of the "Great Deposit Reshuffle." Millions of folks rush to re-allocate their funds so all deposits are below 100K.
How will this impact the banking sector, since there is no net loss of funds? Well, those same people who were clueless (or didn't care) about the 100K limit will have to make a judgement about which banks are "safest."
My WAG: credit unions and the big name-brand banks benefit. Smaller, regional banks suffer. Not a very bold prediction, but there it is.
With $600 million above deposit insurance (30%!!)
the hot money will be fleeing tomorrow morning.
They may not make Friday night.
Get Cash son!
Brand new FRNs from the Fed.
I hope they were ready for this one this friday, or it may get ugly next week in California.
Someday this war's gonna end...
Bad news for Mr. Bull Market... More pics of peopled lined up outside this bank will only add to the fear...heck with gas prices this high people might just forget the money at this IE bank
Ella - I believe that brokered deposits are the ones where you go to a website and select the bank with the best return for your CD. So hot money must be amounts over $100,000?
ABA asked the FDIC to clarify that deposits obtained through the Certificate of Deposit Account Registry (CDARS) are not viewed as brokered deposits and unnecessarily restricted.
In a letter to FDIC Chairman Sheila Bair, ABA asked that examiners not criticize a bank for relying on brokered deposits if the deposits were obtained through CDARS reciprocal transactions; that the FDIC grant waivers to adequately capitalized banks wishing to use CDARS; and that the FDIC respond to waiver requests as promptly as possible to minimize customer and operational disruption.
ABA said it understands that the FDIC considers CDARS deposits to be subject to the law governing brokered deposits, whose intent is to minimize the use of volatile deposits by a bank that is not well capitalized.
"We believe it would be appropriate for the FDIC to apply the statute in a way that recognizes that certain deposits function as core deposits even though there is an intermediary between the depositor and the institution that issues a CD," ABA said.
CDARS is an ABA-endorsed product of Promontory Interfinancial Network LLC, which offers up to $50 million in federal deposit insurance coverage by spreading excess deposits among other banks in the network.
And I want to know who has so much money in cash that they can't be bothered to spread it among enough banks to keep each account under $100,000? A lot of people apparently.
I am assuming that this is Vineyard (VNBC) on the NASDAQ. Their September puts surged $0.75 to $1.15 from $0.40. If you had bought the options yesterday, you would have made 187.5% on your money. In fact, the ask price is $1.30 or $0.90 over the previous price. Looks like someone believes that the company will fail. After hours, the stock is up 9% to $2.35 from $2.16. Lots of money playing with this stock.
Another alternative for consumers is to use a bank that takes part in the Certificate of Deposits Account Registry Service -- or CDARS (pronounced "cedars") -- which enables consumers to get up to $50 million in FDIC insurance, said Lynda Nahra, president and CEO of Goleta-based Community West Bank, which has been part of the network for three years. "There are only a few of us locally," added Nahra. "I imagine more will be."
Calls to other Santa Barbara County community banks to inquire about their CDARS participation were not returned.
"We've certainly had more phone calls and people coming in for (all kinds of) information," said Nahra, talking about depositors jittery over news reports. Staffers are spending a lot more time discussing ways of optimizing FDIC protection and the CDARS program, of which about 2,150 institutions, or a quarter of all U.S. banks, participate. Some recent customers for the latter are retirees, business owners, nonprofits and fund managers.
CDARS offers depositors at the bank the "safety and convenience of one-stop deposits, rate negotiations and a single consolidated statement for all CDs." According to Nahra, the bank has approximately $28 million in customer CDARS. "I believe this speaks to the wealth in our community, as well as customers becoming more educated and protecting their assets better."
In times when many individuals and businesses deal with multiple banks to obtain $100,000 of FDIC coverage at each institution, Nahra said bank management believes they offer a "real convenience for customers" by offering CDARS.
The CDs go to well-capitalized banks that have been vetted by Promontory Interfinancial Network, which debuted CDARS to the public in 2003 after a year of development costing in the neighborhood of $20 million. Most of Promontory's founding members and top managers are former FDIC executives.
And I want to know who has so much money in cash that they can't be bothered to spread it among enough banks to keep each account under $100,000? A lot of people apparently.
Rate of bank failures has been pretty small in the past few years. A few more headline meltdowns, and there will be fewer over-the-limit accounts.
That redistribution may itself cause some banking problems.
That redistribution may itself cause some banking problems.
Pulled Money out of unnamed Seattle based bank and rolled it into larger stage coach embroidered one for fear of not being able to access my money. Was told that many people are spreading their money across banks now.
In general, local or regional banks offer the CDARS program while major banks such as JPMorgan Chase (JPM), Wells Fargo (WFC) and Wachovia (WB) do not. The CDARS program is available through about 2,000 banks in all 50 states and the District of Columbia think Apple Bank for Savings in New York, Bank of Houston or Northrim Bank in Anchorage, Alaska.
The American Bankers Association has endorsed the product, saying "CDARS allows banks to offer customers security as well as the convenience of one-stop shopping. It's good for banks, depositors and the economy."
Bank of America Corp (NYSE:BAC - News), the largest U.S. retail bank, said on Thursday that it has received subpoenas and requests for information from federal and state government agencies over auction-rate securities.
Citigroup estimated that securities eligible for the buyback have a face value of $7.3 billion and may be worth about $500 million less on the market than their purchase price. Under accounting rules, Citigroup may have to record a pre-tax loss to reflect the difference. The actual loss ``will depend on the market value at that time and the amount of securities purchased,'' the bank said in the statement.
The SEC is conducting a formal investigation of Countrywide, which Bank of America bought last month, according to a regulatory filing today. Further details weren't included in the filing by Charlotte, North Carolina-based Bank of America.
hot money:
Interest-sensitive deposits in domestic accounts, such as short-term bank CDs, that are subject to withdrawal at maturity if another bank offers a higher rate.
Deposit, usually a Certificate of Deposit (CD) purchased from a broker acting as an agent for depositors. The broker, often a securities broker-dealer, pools CDs from many small investors and markets them to financial institutions, usually in blocks nearing $100,000, and negotiates a higher rate for CDs placed with the purchaser. Federal law prohibits undercapitalized banks and thrifts from accepting brokered deposits.
But before IndyMac failed, it was not even on a list of troubled banks closely watched by the Federal Deposit Insurance Corp. That list includes 90 firms, a relatively small number within the U.S. banking system. FDIC officials acknowledged Monday that other banks could also fail.
FDIC Chairman Sheila Bair warned recently that new banks that rely on hot money from brokered accounts would be examined more carefully. The agency is also exploring ways to restrict banks from offering these accounts.
These accounts are not necessarily illegal or unwise, federal regulators said. They can help small rural or regional banks rapidly raise money to pay depositors who want to withdraw their money.
Since last summer, banks have faced a daunting predicament. Borrowers are defaulting in droves on all kinds of commercial real estate loans, home mortgages and consumer debt and can't pay the banks back.
Regulators are focusing on so-called brokered deposits that are funneled into a bank by customers of brokerage firms chasing the highest yields with little regard to where their money sits as long as their deposits are federally insured. Some describe such funds as hot money because the money is likely to leave a bank just as quickly as the depositor chases the highest yield upon a certificate of deposit's maturity.
"As a general rule, if an institution is relying on brokered deposits to fuel asset growth, it should raise a red flag with both investors and regulators," said Steve Andrews, president and CEO of the Bank of Alameda. "Including brokered deposits in the funding mix is certainly acceptable. However, keeping the percentage under 10 percent or so is a prudent approach versus letting the percentage creep over 25 percent or more."
Bankers and their regulators prefer to see a financial institution depend more on so-called core deposits that come in from local individuals and businesses that have a customer relationship with the bank.
The source of deposits is getting more attention these days as bank failures rise. The FDIC shut down one Arkansas bank earlier this year that had more than 80 percent of its deposit base coming in from brokered deposits. The heavy reliance on brokered deposits leads to a lower franchise value because the financial institution has so few customer relationships a rival bank would be interested in acquiring. Feds leaning on banks over brokered deposits - San Francisco Business Times:
Actually, I think the best quote from the LA Times article is this:
"The regulators' conditions also include a requirement to find "experienced and competent individuals" as chief executive and chief credit officer. Vineyard fired its CEO in January."
Who has been running the asylum in the meantime? The whole article is full of laughs. Highly recommended...
Jeeez, is there any good news in the San Diego area?! And now WAMU says some branches may close... Sure hope the boys in Tokyo don't try to sell UBOC now!
ABA is as crooked as SIFMA, FDIC, SEC, DOJ, FBI, Treasury, FOMC, FASB, etc, Freiends Of Angelo...
Our members have consistently told us that they need a long-term solution to attract the new deposits necessary to fund lending and investment activities in their communities," said ABA president Don Ogilvie. "CDARS is such a solution. Now smaller banks have the opportunity to promote a new, secure deposit choice that allows customers to keep their savings in a local institution. This is good for the banking industry and our economy. We encourage banks to take a closer look at MARS and to put this tool to use."
When you place a
large deposit with Bank of Commerce (a network member), Bank of Commerce uses
the CDARS service to place your funds into CDs issued by other members of the
network. This occurs in increments of less than $100,000 to ensure that both
principal and interest are eligible for full FDIC protection. Other network
members do the same thing with their customers' funds. With help from a
sophisticated matching system, banks exchange funds with other members of the
network. These exchanges, which occur on a dollar-to-dollar basis, bring the
full amount of your original deposit back to the bank.
As a result, Bank of Commerce can make the full amount of the deposit
available for community lending purposes (the money stays local!).
What else should I know?
IBM announces pay cut
By George Spohr
Times Herald-Record
August 07, 2008
ARMONK One month after signing a job-retention deal with New York, IBM said Wednesday it will cut the pay of 3,500 workers at its East Fishkill, Poughkeepsie and Vermont operations.
"This action and the investment announcement in New York are not linked," IBM spokesman Jeff Couture said. "We are making this change to improve our competitiveness and to ensure our pay practices and cost structure are competitive with other companies in our industry."
Big Blue said the 10 percent cut for assembly line workers would occur at its semiconductor manufacturing plants there, and that come January it would discontinue premiums for shift employees who work seven 12-hour days over a two-week period. Those workers have been earning a 20 percent premium over their wage, plus overtime pay.
I'm not short economically speaking, I'm just philosophically on the other side of the crook game! This is fun to watch these snakes fry! If I can contribute to the woodpile, that makes me happy, is that a crime?
Not enough money to cover all the coming deposits. Get Gold or get diluted. Really diluted. You think their printing will merely cover the FDIC deposits of 2+ Trillion? No way! Backstop will include banks, brokers, traders, insurance, builders, transports (airlines and automakers), GSEs (equity and debt), and all assets of failing banks. Then they'll be after every tax, tariff, means of confiscation possible. Like a financial plague. Stopper's out of the tub, boys. Get gold or get ruined!
IBM announces pay cut
By George Spohr
Times Herald-Record
August 07, 2008
ARMONK One month after signing a job-retention deal with New York, IBM said Wednesday it will cut the pay of 3,500 workers at its East Fishkill, Poughkeepsie and Vermont operations.
"This action and the investment announcement in New York are not linked," IBM spokesman Jeff Couture said. "We are making this change to improve our competitiveness and to ensure our pay practices and cost structure are competitive with other companies in our industry."
Big Blue said the 10 percent cut for assembly line workers would occur at its semiconductor manufacturing plants there, and that come January it would discontinue premiums for shift employees who work seven 12-hour days over a two-week period. Those workers have been earning a 20 percent premium over their wage, plus overtime pay.
What is the difference between a brokered deposit and WAMU,Wachovia, GMAC etc, running ads extolling their 'high' interest rates on CD's?
Most everyone realizes why they are offering more but as long as it is FDIC insured what is the risk? At some point won't the FED have to put a ceiling on what banks can offer for deposits or desperate institutions will do what they have to do to suck up deposits?
My Merrill broker called me yesterday evening and suggested I buy CDs. I play along. What banks I say. In addition to some i never heard of, he mentions WaMu and B of A. Gets real insulted when I laugh at him. Says don't I believe in FDIC, in the US govt. Well, no I say. I quote him what I think I read here on a thread to the effect that FDIC has $52 billion and Warren Buffett has $62 billion. He was indignant, but I think I heard a little bit of fear in his voice that he was suppressing.
Correction Lawyer Liz, the FDIC HAD $52 billion, well almost $53, but that was before Indymac and that Nevada bank. Probably south of $45 billion now.
The problem is banks like Wamu and Wachovia are hoovering up CD money from around the nation which, if worse comes to worse, means the FDIC is left holding the bag for these banks desperate efforts to attract funds. Surely the FDIC should try and put a stop to troubled banks efforts to shore up their balance sheets by imperiling the FDIC's and raiding the deposits of more stable banks.
Selling ammunition in a liquor store was not in our marketing plan. However selling mattresses with secret money pouches off the back of the repo truck at Vineyard National is. See you there.
Lefty you should also consider selling easily portable mattresses (perhaps with backpack straps) to pretty little real estate agents so they can carry them on their backs.
Merrill Lynch said Thursday it will follow Citigroup in cobbling together a settlement for clients who bought auction rate securities, amid growing pressure from its own brokers to pay their clients back.
Confirming a report on CNBC that Merrill was considering such a move, the firm said that effective January 15, 2009, and through January 15, 2010, it will offer to buy at par auction rate securities sold by it to its retail clients.
"Merrill Lynch retail clients currently hold an estimated $12 billion in auction rate securities, which Merrill Lynch expects to be reduced to under $10 billion by January 2009 as a result of announced and anticipated issuer redemptions," the firm said in a statement.
Last week, William Galvin, the Massachusetts secretary of state, accused Merrill Lynch of fraud, alleging that its brokers knowingly misled investors who put money into auction rate securities that their money could be easily redeemed at weekly or monthly auctions.
No, no Lefty. Selling ammunition in a liquor store would be folly... sort of like selling mortgages to all those people who said they were Warren Buffet's brother-in-law.
Strongboxes has real retro appeal, not that there's anything wrong with mattresses. I guess you're thinking double-duty for the mattresses, huh, stash & crash.
Lefty's Traveling Ammobile - coming to an underpass near you?
All forms of IRAs and some other retirement accounts are insured up to $250,000.00 (not limited to $100,000) for each individual's eligible aggregate plans in one institution.
I've been posting on Vineyard's (VNBC) yahoo message board for almost a year (under "corssroc") telling the longs to get the hell out of the stock. I told them how it was going to play out - from the dividend cut, to the consent order, to the huge charge-offs, to the former CEO not being allowed to return to the bank, etc. etc. And I was held in derision. Oh sweet sweet schadenfreude. Vineyard's toast - over $200 million in NPAs vs. less than $30 million in equity capital. They need over $150 million in equity capital just to get their Texas Ratio back in to the death zone (below 100%). This puppy's dead. Good riddance. This bank was a poster child for reckless construction lending in the Inland Empire. Buh Bye!!
No worries. They are parked at the Fed and swapped for T's AT FACE (not market) value. It is a bid to raise cash - it has, in my opinion, no face of good will.
The Fed will settle these after they roll over a few times (say 9 events @ 129 days each) and with inflation, they have actually made money plus pumped up the balance sheet for immediate relief.
I suspect in about two to three years, we will be reading how the Fed has done the public a service by negotiating a fair settlement on monies owed.
"The company had a net increase of $146.4 million in deposits during the second quarter of 2008, related primarily to an increase in
time deposit accounts, of which $266.3 million came from brokered CDs."
Yah know what this all about, this subprime mess, this accounting fraud game, this era of writedowns and fraud... huh, do yah punk?
This is all about dope and banks that failed to screen out drug cash, which is one of the drivers behind no-doc loans and down-payments that open an account for a mortgage where money laundering occurs.
Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source, and/or destination of money, and is a main operation of the underground economy.
Wall street is The Underground Economy and they use synthetic derivatives to spin drug money into entities that are not regulated;The War On Drugs, is really a war on the middle class!
Placement - At this stage, the launderer inserts the dirty money into a legitimate financial institution. This is often in the form of cash bank deposits. This is the riskiest stage of the laundering process because large amounts of cash are pretty conspicuous, and banks are required to report high-value transactions.
Layering - Layering involves sending the money through various financial transactions to change its form and make it difficult to follow. Layering may consist of several bank-to-bank transfers, wire transfers between different accounts in different names in different countries, making deposits and withdrawals to continually vary the amount of money in the accounts, changing the money's currency, and purchasing high-value items (boats, houses, cars, diamonds) to change the form of the money. This is the most complex step in any laundering scheme, and it's all about making the original dirty money as hard to trace as possible.
Ahhh.. it was a crazy idea....... any other ideas?
After thought: Officials say the suspicious activity in the case of Governor Eliot Spitzer was a money-laundering technique known as "structuring." Banks are required to file different forms for all customer transactions totaling $10,000 or more. In order to catch the bad guys who think they can fly under the radar by making a series of sub-$10,000 withdrawals, banks have developed systems to flag patterns of unusual activity like this.
S.A.R.'s have been required by law since 1996, but they've increased substantially in number since the Patriot Act was passed after September 11, 2001. Last year, depository banks filed 567,080 S.A.R.'s, and other financial institutions filed another 496,400. Ten years prior to that, banking officials received just 81,197 such forms.
According to the F.B.I. affidavit in the Emperor's Club case, Client 9 (a.k.a. Spitzer) chose to pay for services in cash rather than wire transfer. Assuming that Spitzer was withdrawing large sums of money from his account to pay for his visits from Kristen and her co-workers, his bank's system would have flagged the activity as possible structuring.
It's important to note that it's not illegal to take large sums of money from your bank account. Many reports get filed on customers with perfectly legitimate reasons for their withdrawals. In fact, it's up to your bank to determine whether or not the activity its systems flag on your account even warrants an S.A.R. at all.
Last summer, employees at a large New York bank detected something suspicious: Gov. Eliot Spitzer was moving around thousands of dollars in what they thought was an effort to conceal the fact that the money was his own, federal officials said on Tuesday.
One of the New York banks which filed the SAR was Capital Ones North Fork, according to the article. The other bank was HSBC. This time the SAR filing triggered the FINCEN (Treasury Department) to alert the IRS to look into the accounts of the shell company receiving Spitzers money.
They said the apparent sleight of hand kept the transactions small and removed his name from deposits. The governors actions prompted the bank to file alerts known as Suspicious Activity Reports with the Treasury Department, which were reviewed by I.R.S. agents on Long Island, the federal officials said.
This is what bank officials in the Banco de Chile in New York, Citibank in Miami and Riggs Bank in Washington DC (and a host of others) did not do in 2004 when Senate investigators found Pinochets name on bank accounts as he moved big chunks of cash around in funny ways. This was what stimulated the Senate Investigative Committee to look into Pinochet. That was the beginning of the end for Pinocho.
Although the headline "...Reports results of operations.." is odd when the main meat is :
...
Vineyard had a remaining borrowing availability of $2.2 million available against its loan and investment collateral pledged at the FHLB.
...
ineyard will no longer be able to accept, renew or rollover brokered deposits unless and until such time as we receive a waiver from the FDIC. Vineyard has requested a waiver from the FDIC, but there can be no assurance that such a waiver will be granted, or granted on the terms requested.
Too funny..
As regards CDARS - I came across it on CNBC when Alan Blinder, Former Governor of the Federal Reserve Bank touted it as a good way of working past the 100K FDIC limit. Sounds good I thought; can't be a scam I thought, this man was the Governor of the Fed - he wouldn't scam me, would he ?
Then the doubts set in
Actually, CDARS looks a good way of working past the $100K limit.
ear and loathing will dominate when Best Practice 6.6 of the PCI Data Security Standard becomes a requirement June 30.
The regulation requires that merchants dealing with debit and credit cards tighten up their security by both conducting application code reviews and installing Web application firewalls.
It was put forth by the PCI Security Standards Council, which issues, maintains and enforces the PCI security standards that govern payment account data security to which all corporations that deal with payment cards must adhere.
Also: Fidelity National Information Services (FIS) is now offering consumer remote deposit services, allowing users to scan and submit checks to their credit union or bank from home.
The new service complements the companys existing Commercial Capture Xpress solution for businesses.
A Texas bank is the first to use the new FIX Xpress Deposit solution, the company said, and several more are expected to be in production in the next 60 to 90 days.
Jacksonville-based FIS (http://www.fidelityinfoservics.com)provides processing and other services to more than 9,000 financial institutions in more than 80 countries, the company said.
The article was dated July 30, 2008. That was then; this is now. All is well. The market is starting to rebound and the brainiac from JP Morgan says the market is going through the roof come December. rc, chill and smell the flowers; all is well.
A total of 720 financial institutions have committed to the remote deposit capture solution from Jack Henry & Associates Inc., the company said.
There now are 622 financial institutions and approximately 11,000 merchants currently using the solution, which allows businesses to scan and deposit checks electronically, the company said.
However, not many are credit unions.
Penetration into the CU space has been minimal, since this is generally tied to an institution's involvement with commercial services. We expect to see a strong growth in RDC interest among credit unions in the months ahead that mirrors growth in member business services as a whole, said John San Filippo, marketing manager for Jack Henrys Symitar divisio
You (& CO.) will need to reconsider. The $USD just broke out.
Now I expect a pullback - and I never buy breakouts, I buy retracements - but Bucky is heading much higher this year and possibly for the next few years.
Short the financials; short tech; short gold stocks (on a bounce) if you wanna make money.
Disagree the dollar is in a 7 year downtrend and if it were to turn around here it would effectively end this long term trend that has seen selling, consolidation and more selling time and again. I say buy gold on dips now may be a good time and stay away from the dollar... How can the dollar go up while equities in the US go down???
IMO this dollar "breakout" is similar to the 1428 we saw on the S&P in June gasp then rollover...
. One of the most curious developments is the recent strengthening of the US dollar compared to the Euro, in-line with sharply lower oil prices. The US imports 4.5 billion barrels of oil per year, so the latest $30 /barrel decline, if sustained, can reduce America's oil import bill by roughly $135 billion per year. On the other hand, the US is also the world's largest exporter of grains, and projections of foreign sales revenue has just been sliced by 20% in the past four weeks.
Two months ago, on June 3rd, Fed chief Bernanke warned the US central bank "is working with the Treasury to carefully monitor developments in foreign exchange markets, and is aware of the effect of the dollar's decline on inflation and price expectations," a subtle threat of stealth intervention in the currency markets. Yet Bernanke never had any intention of lifting US interest rates to bolster the dollar. Instead, the ECB turned its tough words into action, by hiking its repo rate, yet the US dollar, (not the Euro), was the eventual winner from lower oil prices.
i have not read the entire thread (something i almost always do before posting
hope this is not a re-do...
good article that will not be news to the steady eddies here but confirms much of the POV expressed...a la j Kunstler who is interviewed for this article
furthermore: "Between now and early 2011, crude will put on a show to which the entire move we have seen so far will seem only to be preliminary. Crude is presently in a violent correction within a more violent bull market. $110 to $115 should be the limiting factor to this."
I have to go with this fella, because China demand will impact supply.
36 Visitors Online, WTF is this summer? Here I get a killer deal on Polish vodka and prepare myself for battling windmills and 36 Visitors Online? Oh well, Mock, you seem pretty normal, what's happening man?
ECB chief Trichet wasnt afraid to engineer a decline in the Euro-zone stock markets, in order to stamp out inflation psychology. Through the wealth effect, asset prices have an influence on demand, and therefore on future consumer prices. So asset prices are taken into account by central banks, he explained on July 17th. Furthermore, Trichet rejects the Feds practice of ignoring food and energy prices. We do not consider core inflation as a good predictor of future inflation, he said.
However, Trichet was asked on July 18th, if the worst of the global banking crisis was over, We are experiencing a very significant market correction with episodes of turbulence, high volatility and hectic market behavior. It is an ongoing process. The risks to growth are on the downside, including the very significant financial market correction, the possible further increases in oil and commodity prices, and the possible unwinding of global financial imbalances, he warned.
Would you guys get your act together down there, you are going to f*^# it all up for the rest of us. There must be somebody in that big country that can figure this out and fix it..........
I told you to take a deep breath! July 30th was not that long ago unless you are an FB or have some other financial problems. Don't blame the messenger!
Go read the article again and learn from it so you can protect yourself (ie stay out of debt and protect your cash).
The dollar will continue to tread water as long as the Fed continues to bail out every IB or GSE. These are the facts!
I'm serious about tech leading us down - very soon. I could make a TA case that the NAZ never broke its uptrend line from the '03 run. But if it breaks the July low (where all the untested daily/weekly volume is) then its over and we'll see a waterfall in tech shares.
Kona Lisa writes:
After thought: Officials say the suspicious activity in the case of Governor Eliot Spitzer was a money-laundering technique known as "structuring." Banks are required to file different forms for all customer transactions totaling $10,000 or more.
kinda reminds me of clinton
sure glad we got spitzer and clinton on them zipper control issues cuse otherwise the country was in peril
now the whitehouse forging letters that falsely report wmd in iraq...hey who cares, thats just "bidness heare en texsas
Yes, that seems like sound wisdom, and words which I hope I will recall several minutes from now.
Also, it is bewildering to think of the energy spent by so many people, so many politicians on the even which I recall was named zippergate, where DNA was said to link Clinton to trouble -- but, truth be known, if Lewinsky's DNA had been cross referenced to several members of the Republican Party, then ... then what, what would have happened had the barn door been closed -- so to speak, WTF if, Monica had been wearing a swimsuit and not a dress? The WMD are an easy target, but I like the grassy knoll flashbacks of why Monica brought the dress back home to Mama.
In this simple time which we are in now, it seems as if that is like watching the censored version of Disney reruns of Bambi -- without the gun. That makes sense, doesnt's it?
i'm not gonna justify what clinton did...i thought it was just so wrong on many different levels.
but lets face it a woman doesnt just happen to keep a uh-humm stained dress and of course monica had guidance from others.
as deplorable as it was (what clinton did)... it didnt cost the country in lives nor treasure, so i put it in perspective.
my biggest bitch against bill was that he followed repub, phill gramm down the shit hole in signing the legislation which ended half of the glass-steagal act...very wrong.
anyway, its all water under the bridge now...ah or.. water under the reactor cause we are in deep deep voodoo...this doesnt end well
Shit, WTF, a GD lime for 20 cents, on sale for 3 for $2.00.
WTF, Milkbone Dogbones $3.77 for 26 ounces of crap, and that was at a place I'd rather be dead than shop at, i.e, wal-sucks.
Inflation is in my vacinity and I saw diesel for over $4.00 a gal -- which has me, telling my retarded neighbors that we may see food shortages this winter and challenging inflation (as i ask them if their homes are well insulated and ready for new improved heating bills).
WTF, is up with CR and Tanta -- they need a fucking book -- not this digital shit that has a realtime blog -- you need to start a bible and have an index linked to stories and and comments (such as this) that are related to great topics; wake up! TMF (The Moot Fool's) did that and made a killing, where are you with this, wake up, blogs are great, but people want reference material about the world falling apart -- by the bed at night, when they read a book.
I have also suggested that CR be embedded in some way at Wiki -- the reason being, this shit, this shit right here which I'm typing is going to be pico dust and pixel haze -- no one gives a shit about a two year old blog, but when XMAS comes and they see, CalculatedRisk The Movie -- they'll buy the DVD some night and then maybe a book, because reference books are cool, and TMF sucks!
Mock, I'm with you and the destruction of America is appalling and these Bush Coup years have been very challenging. I can honestly say, I never watch a full speech by this retard. I read books about Lincoln almost every year and enjoy history and economics and this charade of fraudsters has been very difficult to watch. I've been out of stocks in general since the dotcom bust, but I've gone over shitloads of details related to that and to what is going on now, like covered bonds, QSPEs, and derivatives, synthetics, govt statistics... it all makes me sick, but WTF!
The European summer vacation just isn't what it used to be. With economies stagnating and inflation in the euro zone about 4 percent, people are cutting the length of their holiday stay, vacationing close by, and in some cases, just staying home.
Des Bouillons, a 43-year-old accountant, is forgoing one of France's sacrosanct rituals: The great August lull in which the country shuts down for the entire month, turning cities into ghost towns as the masses hit the beaches or country retreats.
Not only is des Bouillons staying in Paris, he intends to (quelle horreur!) work through August so he can go away off-season once prices drop. "I have to be careful about my budget," des Bouillons said.
Across the continent, Europeans are sharing des Bouillons' pain.
We have paid 20% more for fuel, on average since 2000, says the poll by consumer price comparison website uSwitch.com. Currently that figure has come down to 12%.
Supervisor and Township Roadmaster Harry Hoppes said that according to the Pennsylvania Department of Transportation, the price of liquid asphalt has risen from $396 per ton in May to $834 per ton in August, while blacktop has risen respectively from $50 per ton to $79 per ton.
I'm serious about tech leading us down - very soon. I could make a TA case that the NAZ never broke its uptrend line from the '03 run. But if it breaks the July low (where all the untested daily/weekly volume is) then its over and we'll see a waterfall in tech shares.
damn straight, AMD should go from like 42 to 5.01...Oh wait, thats priced in already, best short AMD to 2. and , NVDA from 11 to 4....thats the smart money, or even better, INTC from 22 to like 6...
so its unaminous then:
short tech, short financials, short oil, long gold, and of course short US dollar and treasuries...its all coming together..oh yeah, better short RE before its too late...
Dont be afraid to tell the cracker where the smart money is going...
Under perfect conditions, observers can expect to see about 90 to100 meteors an hour, said Wayne Hally, a self-professed "meteor geek" who writes a newsletter for the North American Meteor Network.
That sucks! Why am I paying 3 for $2? Is there suddenly a lime shortage or a crisis which I'm unaware? I think it may be related to asphalt, but obviously I need to move!
Browsing around I have found a number of banks that appear to be goners as of 3/31 but the FDIC has made no move to close them. And that brings me to the question: do you suppose the FDIC is not closing a number of banks simply because it fears it does not have the necessary funds to do so or that doing do would so deplete its funds that it would be out of business?
Bank run, bank run!!!
if the story is close to reality. Then those hot money flows will be gone in a flash. This would leave the bank with a gaping hole.
You would be pretty foolish to knowingly leave your money in a bank that is about to fail.
So here is my prediction worth about 0.192 cents US, this bank will be taken over by the FDIC friday.
Cheers to all those hardworking FDIC folks.
FNORD
Never heard of them, anyone? Bueller? Bueller?
You may want to take a deep breath before reading this one!
Thar she blows: The last hurrah for the banking system
BAC In trouble after hours!
American Express's Ratings May Be Cut by Moody's
American Express's Ratings May Be Cut by Moody's (Update2) - Bloomberg.com
U.S. Consumer Credit Increases $14.3 Billion in June
U.S. Consumer Credit Increases $14.3 Billion in June (Update2) - Bloomberg.com
U.S. consumers borrowed more than twice as much as economists forecast in June as a decline in home equity forced Americans to fund purchases with credit cards and other loans.
I think we're on the cusp of the "Great Deposit Reshuffle." Millions of folks rush to re-allocate their funds so all deposits are below 100K.
How will this impact the banking sector, since there is no net loss of funds? Well, those same people who were clueless (or didn't care) about the 100K limit will have to make a judgement about which banks are "safest."
My WAG: credit unions and the big name-brand banks benefit. Smaller, regional banks suffer. Not a very bold prediction, but there it is.
Of course, if they demand cash...
Well, it is Friday tomorrow !!
No wonder FDIC was hiring recently...
Hurry cut to the camera outside the bank!
Here comes an old fashioned bank run...
FDIC is going to bust the Times for this one...
Buh-bye.
With $600 million above deposit insurance (30%!!)
the hot money will be fleeing tomorrow morning.
They may not make Friday night.
Get Cash son!
Brand new FRNs from the Fed.
I hope they were ready for this one this friday, or it may get ugly next week in California.
Someday this war's gonna end...
Someday this war's gonna end...
It may escalate first then simmer for a while...
Bad news for Mr. Bull Market... More pics of peopled lined up outside this bank will only add to the fear...heck with gas prices this high people might just forget the money at this IE bank
Do banks hold gold bullion in their safes anymore? You know to backup their deposits.
BAC gets subponeas...this is total BS! Someone leaked this cuz the stock tanked late.
WHERE IS SHEILA B AT???
I could sell cold beer there, out of my repo Dodge Charger. Sort of a humanitarian thing.
What the hell we got going on here kids? Looks like a can of ass whipping went off to me.
BAC gets subponeas...this is total BS! Someone leaked this cuz the stock tanked late.
Where is the SEC? They were sleeping on the job today. What good are they if they can't keep stocks from going down?
OK... So what is a brokered deposit and what is hot money.
Jeez, I go away for a little while and come back to this site feeling like a newbie.
FDIC is going to bust the Times for this one...
Was this bank on the SEC's naughty list?
Ella - I believe that brokered deposits are the ones where you go to a website and select the bank with the best return for your CD. So hot money must be amounts over $100,000?
ABA asked the FDIC to clarify that deposits obtained through the Certificate of Deposit Account Registry (CDARS) are not viewed as brokered deposits and unnecessarily restricted.
In a letter to FDIC Chairman Sheila Bair, ABA asked that examiners not criticize a bank for relying on brokered deposits if the deposits were obtained through CDARS reciprocal transactions; that the FDIC grant waivers to adequately capitalized banks wishing to use CDARS; and that the FDIC respond to waiver requests as promptly as possible to minimize customer and operational disruption.
ABA said it understands that the FDIC considers CDARS deposits to be subject to the law governing brokered deposits, whose intent is to minimize the use of volatile deposits by a bank that is not well capitalized.
"We believe it would be appropriate for the FDIC to apply the statute in a way that recognizes that certain deposits function as core deposits even though there is an intermediary between the depositor and the institution that issues a CD," ABA said.
CDARS is an ABA-endorsed product of Promontory Interfinancial Network LLC, which offers up to $50 million in federal deposit insurance coverage by spreading excess deposits among other banks in the network.
And I want to know who has so much money in cash that they can't be bothered to spread it among enough banks to keep each account under $100,000? A lot of people apparently.
I am assuming that this is Vineyard (VNBC) on the NASDAQ. Their September puts surged $0.75 to $1.15 from $0.40. If you had bought the options yesterday, you would have made 187.5% on your money. In fact, the ask price is $1.30 or $0.90 over the previous price. Looks like someone believes that the company will fail. After hours, the stock is up 9% to $2.35 from $2.16. Lots of money playing with this stock.
Another alternative for consumers is to use a bank that takes part in the Certificate of Deposits Account Registry Service -- or CDARS (pronounced "cedars") -- which enables consumers to get up to $50 million in FDIC insurance, said Lynda Nahra, president and CEO of Goleta-based Community West Bank, which has been part of the network for three years. "There are only a few of us locally," added Nahra. "I imagine more will be."
Calls to other Santa Barbara County community banks to inquire about their CDARS participation were not returned.
"We've certainly had more phone calls and people coming in for (all kinds of) information," said Nahra, talking about depositors jittery over news reports. Staffers are spending a lot more time discussing ways of optimizing FDIC protection and the CDARS program, of which about 2,150 institutions, or a quarter of all U.S. banks, participate. Some recent customers for the latter are retirees, business owners, nonprofits and fund managers.
CDARS offers depositors at the bank the "safety and convenience of one-stop deposits, rate negotiations and a single consolidated statement for all CDs." According to Nahra, the bank has approximately $28 million in customer CDARS. "I believe this speaks to the wealth in our community, as well as customers becoming more educated and protecting their assets better."
In times when many individuals and businesses deal with multiple banks to obtain $100,000 of FDIC coverage at each institution, Nahra said bank management believes they offer a "real convenience for customers" by offering CDARS.
The CDs go to well-capitalized banks that have been vetted by Promontory Interfinancial Network, which debuted CDARS to the public in 2003 after a year of development costing in the neighborhood of $20 million. Most of Promontory's founding members and top managers are former FDIC executives.
And I want to know who has so much money in cash that they can't be bothered to spread it among enough banks to keep each account under $100,000? A lot of people apparently.
Rate of bank failures has been pretty small in the past few years. A few more headline meltdowns, and there will be fewer over-the-limit accounts.
That redistribution may itself cause some banking problems.
That redistribution may itself cause some banking problems.
Pulled Money out of unnamed Seattle based bank and rolled it into larger stage coach embroidered one for fear of not being able to access my money. Was told that many people are spreading their money across banks now.
In general, local or regional banks offer the CDARS program while major banks such as JPMorgan Chase (JPM), Wells Fargo (WFC) and Wachovia (WB) do not. The CDARS program is available through about 2,000 banks in all 50 states and the District of Columbia think Apple Bank for Savings in New York, Bank of Houston or Northrim Bank in Anchorage, Alaska.
The American Bankers Association has endorsed the product, saying "CDARS allows banks to offer customers security as well as the convenience of one-stop shopping. It's good for banks, depositors and the economy."
The ABA also loves SIFMA and Friends Of Angelo
Expired
Bank of America Corp (NYSE:BAC - News), the largest U.S. retail bank, said on Thursday that it has received subpoenas and requests for information from federal and state government agencies over auction-rate securities.
CDARS.COM - Where to find CDARS
C loss on ARS buyback ballparked at $500 million - that looks like a number pulled out of somebody's...hat:
Citigroup to Unfreeze $19.5 Billion of Auction Debt (Update2)
By David Scheer and Karen Freifeld
[snip]
Citigroup estimated that securities eligible for the buyback have a face value of $7.3 billion and may be worth about $500 million less on the market than their purchase price. Under accounting rules, Citigroup may have to record a pre-tax loss to reflect the difference. The actual loss ``will depend on the market value at that time and the amount of securities purchased,'' the bank said in the statement.
[snip]
Bank strength has an inverse relationship to its advertised CD rate.
Just found this WA state CDARS bank...Columbia Bank,Tacoma, WA
Not sure but I read an article about a similarly named bank in trouble recently.
Does anyone have a really large mattress for sale?
Would someone translate this in english for those who have not finishe econ101. Thanks.
[F]ederal regulators have ordered Vineyard National Bank of Corona to stop accepting so-called hot-money deposits ...
The SEC is conducting a formal investigation of Countrywide, which Bank of America bought last month, according to a regulatory filing today. Further details weren't included in the filing by Charlotte, North Carolina-based Bank of America.
When does Leftys Liquors begin to diversify?
Sounds like there's a growth opportunity for Leftys Strongbox & Ammunition Emporium.
hot money:
Interest-sensitive deposits in domestic accounts, such as short-term bank CDs, that are subject to withdrawal at maturity if another bank offers a higher rate.
src
hot money: Definition from Answers.com
I smell a bank closure friday coming up....OMG, do that again...
Lefty's won't even stock dryfly gin. But they do have martini olives. Strange.
Pretty east to cross-reference CDARS banks with safety checks:
Bank Ratings
Maybe here too: National Bank Operating Subsidiary List (A-M)
Banking Dictionary: Brokered Deposit
Deposit, usually a Certificate of Deposit (CD) purchased from a broker acting as an agent for depositors. The broker, often a securities broker-dealer, pools CDs from many small investors and markets them to financial institutions, usually in blocks nearing $100,000, and negotiates a higher rate for CDs placed with the purchaser. Federal law prohibits undercapitalized banks and thrifts from accepting brokered deposits.
But before IndyMac failed, it was not even on a list of troubled banks closely watched by the Federal Deposit Insurance Corp. That list includes 90 firms, a relatively small number within the U.S. banking system. FDIC officials acknowledged Monday that other banks could also fail.
FDIC Chairman Sheila Bair warned recently that new banks that rely on hot money from brokered accounts would be examined more carefully. The agency is also exploring ways to restrict banks from offering these accounts.
These accounts are not necessarily illegal or unwise, federal regulators said. They can help small rural or regional banks rapidly raise money to pay depositors who want to withdraw their money.
Since last summer, banks have faced a daunting predicament. Borrowers are defaulting in droves on all kinds of commercial real estate loans, home mortgages and consumer debt and can't pay the banks back.
Regulators are focusing on so-called brokered deposits that are funneled into a bank by customers of brokerage firms chasing the highest yields with little regard to where their money sits as long as their deposits are federally insured. Some describe such funds as hot money because the money is likely to leave a bank just as quickly as the depositor chases the highest yield upon a certificate of deposit's maturity.
"As a general rule, if an institution is relying on brokered deposits to fuel asset growth, it should raise a red flag with both investors and regulators," said Steve Andrews, president and CEO of the Bank of Alameda. "Including brokered deposits in the funding mix is certainly acceptable. However, keeping the percentage under 10 percent or so is a prudent approach versus letting the percentage creep over 25 percent or more."
Bankers and their regulators prefer to see a financial institution depend more on so-called core deposits that come in from local individuals and businesses that have a customer relationship with the bank.
The source of deposits is getting more attention these days as bank failures rise. The FDIC shut down one Arkansas bank earlier this year that had more than 80 percent of its deposit base coming in from brokered deposits. The heavy reliance on brokered deposits leads to a lower franchise value because the financial institution has so few customer relationships a rival bank would be interested in acquiring.
Feds leaning on banks over brokered deposits - San Francisco Business Times:
TGIF?
Actually, I think the best quote from the LA Times article is this:
"The regulators' conditions also include a requirement to find "experienced and competent individuals" as chief executive and chief credit officer. Vineyard fired its CEO in January."
Who has been running the asylum in the meantime? The whole article is full of laughs. Highly recommended...
So, I guess this means that it is not a good idea to buy a CD from your broker?
Jeeez, is there any good news in the San Diego area?! And now WAMU says some branches may close... Sure hope the boys in Tokyo don't try to sell UBOC now!
ABA is as crooked as SIFMA, FDIC, SEC, DOJ, FBI, Treasury, FOMC, FASB, etc, Freiends Of Angelo...
Our members have consistently told us that they need a long-term solution to attract the new deposits necessary to fund lending and investment activities in their communities," said ABA president Don Ogilvie. "CDARS is such a solution. Now smaller banks have the opportunity to promote a new, secure deposit choice that allows customers to keep their savings in a local institution. This is good for the banking industry and our economy. We encourage banks to take a closer look at MARS and to put this tool to use."
TGIF indeed, WTF, where is vodka bottle?
TGIF indeed, WTF, where is vodka bottle?
I like that, except that some people drinking Absolute Vodka to celebrate their gains in their short positions
This is good, yah!
Enjoy $50 Million in FDIC Insurance Through the CDARS(R) Service, Bank of Commerce..
Enjoy $50 Million in FDIC Insurance Through the CDARS(R) Service, Bank of Commerce...
| Reuters
When you place a
large deposit with Bank of Commerce (a network member), Bank of Commerce uses
the CDARS service to place your funds into CDs issued by other members of the
network. This occurs in increments of less than $100,000 to ensure that both
principal and interest are eligible for full FDIC protection. Other network
members do the same thing with their customers' funds. With help from a
sophisticated matching system, banks exchange funds with other members of the
network. These exchanges, which occur on a dollar-to-dollar basis, bring the
full amount of your original deposit back to the bank.
As a result, Bank of Commerce can make the full amount of the deposit
available for community lending purposes (the money stays local!).
What else should I know?
ROTFLMAO>>>>LOL!
IBM announces pay cut
By George Spohr
Times Herald-Record
August 07, 2008
ARMONK One month after signing a job-retention deal with New York, IBM said Wednesday it will cut the pay of 3,500 workers at its East Fishkill, Poughkeepsie and Vermont operations.
"This action and the investment announcement in New York are not linked," IBM spokesman Jeff Couture said. "We are making this change to improve our competitiveness and to ensure our pay practices and cost structure are competitive with other companies in our industry."
Big Blue said the 10 percent cut for assembly line workers would occur at its semiconductor manufacturing plants there, and that come January it would discontinue premiums for shift employees who work seven 12-hour days over a two-week period. Those workers have been earning a 20 percent premium over their wage, plus overtime pay.
[snip]
WAWA,
I'm not short economically speaking, I'm just philosophically on the other side of the crook game! This is fun to watch these snakes fry! If I can contribute to the woodpile, that makes me happy, is that a crime?
Not enough money to cover all the coming deposits. Get Gold or get diluted. Really diluted. You think their printing will merely cover the FDIC deposits of 2+ Trillion? No way! Backstop will include banks, brokers, traders, insurance, builders, transports (airlines and automakers), GSEs (equity and debt), and all assets of failing banks. Then they'll be after every tax, tariff, means of confiscation possible. Like a financial plague. Stopper's out of the tub, boys. Get gold or get ruined!
Energycon, the link and the quote don't match.
d'oh!
IBM announces pay cut
By George Spohr
Times Herald-Record
August 07, 2008
ARMONK One month after signing a job-retention deal with New York, IBM said Wednesday it will cut the pay of 3,500 workers at its East Fishkill, Poughkeepsie and Vermont operations.
"This action and the investment announcement in New York are not linked," IBM spokesman Jeff Couture said. "We are making this change to improve our competitiveness and to ensure our pay practices and cost structure are competitive with other companies in our industry."
Big Blue said the 10 percent cut for assembly line workers would occur at its semiconductor manufacturing plants there, and that come January it would discontinue premiums for shift employees who work seven 12-hour days over a two-week period. Those workers have been earning a 20 percent premium over their wage, plus overtime pay.
[snip]
Friardaddy,
If you're in the banking indusrty I believe the correct term these days is OSIF (Oh Sh#t It's Friday)
trishyla
What is the difference between a brokered deposit and WAMU,Wachovia, GMAC etc, running ads extolling their 'high' interest rates on CD's?
Most everyone realizes why they are offering more but as long as it is FDIC insured what is the risk? At some point won't the FED have to put a ceiling on what banks can offer for deposits or desperate institutions will do what they have to do to suck up deposits?
What's a subponeas? I want one! to go with my big pony.
At some point won't the FED have to put a ceiling on what banks can offer for deposits
What?! And let government interfere with the free market? That's anti-competitive!
My Merrill broker called me yesterday evening and suggested I buy CDs. I play along. What banks I say. In addition to some i never heard of, he mentions WaMu and B of A. Gets real insulted when I laugh at him. Says don't I believe in FDIC, in the US govt. Well, no I say. I quote him what I think I read here on a thread to the effect that FDIC has $52 billion and Warren Buffett has $62 billion. He was indignant, but I think I heard a little bit of fear in his voice that he was suppressing.
So tomorrow we have FNM before the bell AND MBIA - remember them?
They almost seem like a quaint throwback now...
Yooohooooo, Mr Schumer, can you look into this institution for us before you go on vacation? Thank you!
fryday
At some point won't the FED have to put a ceiling on what banks can offer for deposits
A solution might be FDIC covers principal but not the last year's interest.
To paraphrase that revered sage of western culture, Rabbit of Pooh fame: "Oh Dear Ooh gracious this all comes from seeking returns too much."
Merrill retail clients hold $12 bln in auction rate sec.
Merrill to buy back securities starting Jan. 15, 2009
Correction Lawyer Liz, the FDIC HAD $52 billion, well almost $53, but that was before Indymac and that Nevada bank. Probably south of $45 billion now.
The problem is banks like Wamu and Wachovia are hoovering up CD money from around the nation which, if worse comes to worse, means the FDIC is left holding the bag for these banks desperate efforts to attract funds. Surely the FDIC should try and put a stop to troubled banks efforts to shore up their balance sheets by imperiling the FDIC's and raiding the deposits of more stable banks.
Selling ammunition in a liquor store was not in our marketing plan. However selling mattresses with secret money pouches off the back of the repo truck at Vineyard National is. See you there.
"Get gold or get ruined!"
That crap ain't gonna save you, Wall Streets hype machine is all over that. You had better get a gun, a big frigging gun and maybe a big mean ass dog.
Lefty you should also consider selling easily portable mattresses (perhaps with backpack straps) to pretty little real estate agents so they can carry them on their backs.
will a poodle and a squirt gun suffice?
Merrill Will Be Next to Reach Securities Settlement
By Charles Gasparino, CNBC On-Air Editor | 07 Aug 2008 | 05:40 PM ET
Merrill Lynch said Thursday it will follow Citigroup in cobbling together a settlement for clients who bought auction rate securities, amid growing pressure from its own brokers to pay their clients back.
Confirming a report on CNBC that Merrill was considering such a move, the firm said that effective January 15, 2009, and through January 15, 2010, it will offer to buy at par auction rate securities sold by it to its retail clients.
"Merrill Lynch retail clients currently hold an estimated $12 billion in auction rate securities, which Merrill Lynch expects to be reduced to under $10 billion by January 2009 as a result of announced and anticipated issuer redemptions," the firm said in a statement.
Last week, William Galvin, the Massachusetts secretary of state, accused Merrill Lynch of fraud, alleging that its brokers knowingly misled investors who put money into auction rate securities that their money could be easily redeemed at weekly or monthly auctions.
[snip]
Oy, Elvis and John Lee's posts don't go togther...riiight?
Lets see if any AG's sign off on this deal - will MER be around to take care of bidness in 2009?
will a poodle and a squirt gun suffice?
John Lee
Maybe a Pitboodle and a squirt gun filled with lye.
Isn't CDARS just a way to exploit the limits of 'free' FDIC insurance?
I know some would argue the insurance isn't free... it's paid by FDIC banks via premiums.
With only a 52 Bil in reserve and a taxpayer backstop, it's clearly a
Moral Hazard issue.
Therefore, CDARS == Moral Hazard, n'est pas?
No, no Lefty. Selling ammunition in a liquor store would be folly... sort of like selling mortgages to all those people who said they were Warren Buffet's brother-in-law.
Strongboxes has real retro appeal, not that there's anything wrong with mattresses. I guess you're thinking double-duty for the mattresses, huh, stash & crash.
Lefty's Traveling Ammobile - coming to an underpass near you?
Worth noting on dollar limits on FDIC accounts:
All forms of IRAs and some other retirement accounts are insured up to $250,000.00 (not limited to $100,000) for each individual's eligible aggregate plans in one institution.
FDIC Guide to Insurance Coverage (note: PDF)
Sorry about that, ok 45 bil instead of 53 bil.
I guess we will have to nationalize Warren Buffett.
Exactly BondOfSteel. The FDIC is being put on the hook for the interest payments these troubled banks are offering.
Its almost like an upside down CDS. The FDIC can't charge a bank more for insuring riskier CDs.
Anonymous writes:
BAC In trouble after hours
pls explai
I've been posting on Vineyard's (VNBC) yahoo message board for almost a year (under "corssroc") telling the longs to get the hell out of the stock. I told them how it was going to play out - from the dividend cut, to the consent order, to the huge charge-offs, to the former CEO not being allowed to return to the bank, etc. etc. And I was held in derision. Oh sweet sweet schadenfreude. Vineyard's toast - over $200 million in NPAs vs. less than $30 million in equity capital. They need over $150 million in equity capital just to get their Texas Ratio back in to the death zone (below 100%). This puppy's dead. Good riddance. This bank was a poster child for reckless construction lending in the Inland Empire. Buh Bye!!
they have a big building and sign off the 15 fwy in South Corona, looks impressive, a shell filled with fertilizer
energyecon
RE: MER
No worries. They are parked at the Fed and swapped for T's AT FACE (not market) value. It is a bid to raise cash - it has, in my opinion, no face of good will.
The Fed will settle these after they roll over a few times (say 9 events @ 129 days each) and with inflation, they have actually made money plus pumped up the balance sheet for immediate relief.
I suspect in about two to three years, we will be reading how the Fed has done the public a service by negotiating a fair settlement on monies owed.
Vineyard Bank locations for making deposits:
Chino
Corona
Covina
Crestline
Diamond Bar
Irvine
Irwindale
La Verne
Lake Arrowhead
Manhattan Beach
Rancho Cucamonga
San Diego
San Dimas
Upland
Walnut
If someone wants to noodle thru these financials here ther are Q2 - 2008
Been watching the proxy battles going on behind the seens reflected in SEC filings..me thinks there might be mgmt discourse
SNL Financial - Sector Focused Business Intelligence
Kinda interesting the lifeline was severed:
"The company had a net increase of $146.4 million in deposits during the second quarter of 2008, related primarily to an increase in
time deposit accounts, of which $266.3 million came from brokered CDs."
Yah know what this all about, this subprime mess, this accounting fraud game, this era of writedowns and fraud... huh, do yah punk?
This is all about dope and banks that failed to screen out drug cash, which is one of the drivers behind no-doc loans and down-payments that open an account for a mortgage where money laundering occurs.
Wall street is The Underground Economy and they use synthetic derivatives to spin drug money into entities that are not regulated;The War On Drugs, is really a war on the middle class!
HowStuffWorks "How Money Laundering Works"
Placement - At this stage, the launderer inserts the dirty money into a legitimate financial institution. This is often in the form of cash bank deposits. This is the riskiest stage of the laundering process because large amounts of cash are pretty conspicuous, and banks are required to report high-value transactions.
Layering - Layering involves sending the money through various financial transactions to change its form and make it difficult to follow. Layering may consist of several bank-to-bank transfers, wire transfers between different accounts in different names in different countries, making deposits and withdrawals to continually vary the amount of money in the accounts, changing the money's currency, and purchasing high-value items (boats, houses, cars, diamonds) to change the form of the money. This is the most complex step in any laundering scheme, and it's all about making the original dirty money as hard to trace as possible.
Ahhh.. it was a crazy idea....... any other ideas?
After thought: Officials say the suspicious activity in the case of Governor Eliot Spitzer was a money-laundering technique known as "structuring." Banks are required to file different forms for all customer transactions totaling $10,000 or more. In order to catch the bad guys who think they can fly under the radar by making a series of sub-$10,000 withdrawals, banks have developed systems to flag patterns of unusual activity like this.
S.A.R.'s have been required by law since 1996, but they've increased substantially in number since the Patriot Act was passed after September 11, 2001. Last year, depository banks filed 567,080 S.A.R.'s, and other financial institutions filed another 496,400. Ten years prior to that, banking officials received just 81,197 such forms.
According to the F.B.I. affidavit in the Emperor's Club case, Client 9 (a.k.a. Spitzer) chose to pay for services in cash rather than wire transfer. Assuming that Spitzer was withdrawing large sums of money from his account to pay for his visits from Kristen and her co-workers, his bank's system would have flagged the activity as possible structuring.
It's important to note that it's not illegal to take large sums of money from your bank account. Many reports get filed on customers with perfectly legitimate reasons for their withdrawals. In fact, it's up to your bank to determine whether or not the activity its systems flag on your account even warrants an S.A.R. at all.
Final beating of The dead horse:
Last summer, employees at a large New York bank detected something suspicious: Gov. Eliot Spitzer was moving around thousands of dollars in what they thought was an effort to conceal the fact that the money was his own, federal officials said on Tuesday.
One of the New York banks which filed the SAR was Capital Ones North Fork, according to the article. The other bank was HSBC. This time the SAR filing triggered the FINCEN (Treasury Department) to alert the IRS to look into the accounts of the shell company receiving Spitzers money.
They said the apparent sleight of hand kept the transactions small and removed his name from deposits. The governors actions prompted the bank to file alerts known as Suspicious Activity Reports with the Treasury Department, which were reviewed by I.R.S. agents on Long Island, the federal officials said.
This is what bank officials in the Banco de Chile in New York, Citibank in Miami and Riggs Bank in Washington DC (and a host of others) did not do in 2004 when Senate investigators found Pinochets name on bank accounts as he moved big chunks of cash around in funny ways. This was what stimulated the Senate Investigative Committee to look into Pinochet. That was the beginning of the end for Pinocho.
Spitzer heart Pinochet heart US Treasury department « Chile From Within
Such a nice name. In Rancho Cucamonga (sp?) no less.
I checked its Texas ratio. It was 40.10 as of end of March. Probably higher now. Anything over 40 is very bad news. How long before you know....?
All I can say is Hanky Panky has A LOT of bailing to do on this leaky vessel. IBs, FDIC, GSEs...
Bucky might be sinking...
re: Vineyard National BancCorp
Yup, the parent company is VNBC - their 8K that was filed yesterday is at:
exhibit99-1.htm
Although the headline "...Reports results of operations.." is odd when the main meat is :
...
Vineyard had a remaining borrowing availability of $2.2 million available against its loan and investment collateral pledged at the FHLB.
...
ineyard will no longer be able to accept, renew or rollover brokered deposits unless and until such time as we receive a waiver from the FDIC. Vineyard has requested a waiver from the FDIC, but there can be no assurance that such a waiver will be granted, or granted on the terms requested.
Too funny..
As regards CDARS - I came across it on CNBC when Alan Blinder, Former Governor of the Federal Reserve Bank touted it as a good way of working past the 100K FDIC limit. Sounds good I thought; can't be a scam I thought, this man was the Governor of the Fed - he wouldn't scam me, would he ?
Then the doubts set in
Actually, CDARS looks a good way of working past the $100K limit.
-K
The Tangled Web of PCI Compliance
New e-commerce security requirements are vague enough to leave everyone wondering what to do
The Tangled Web of PCI Compliance - InternetNews.com
ear and loathing will dominate when Best Practice 6.6 of the PCI Data Security Standard becomes a requirement June 30.
The regulation requires that merchants dealing with debit and credit cards tighten up their security by both conducting application code reviews and installing Web application firewalls.
It was put forth by the PCI Security Standards Council, which issues, maintains and enforces the PCI security standards that govern payment account data security to which all corporations that deal with payment cards must adhere.
Also: Fidelity National Information Services (FIS) is now offering consumer remote deposit services, allowing users to scan and submit checks to their credit union or bank from home.
The new service complements the companys existing Commercial Capture Xpress solution for businesses.
A Texas bank is the first to use the new FIX Xpress Deposit solution, the company said, and several more are expected to be in production in the next 60 to 90 days.
Jacksonville-based FIS (http://www.fidelityinfoservics.com)provides processing and other services to more than 9,000 financial institutions in more than 80 countries, the company said.
rc writes:
You may want to take a deep breath before reading this one!
Thar she blows: The last hurrah for the banking system
The article was dated July 30, 2008. That was then; this is now. All is well. The market is starting to rebound and the brainiac from JP Morgan says the market is going through the roof come December. rc, chill and smell the flowers; all is well.
Hello folks,,i just heard you all are starting a run on some bank,,along with the L.A. times??
Huh?
A total of 720 financial institutions have committed to the remote deposit capture solution from Jack Henry & Associates Inc., the company said.
There now are 622 financial institutions and approximately 11,000 merchants currently using the solution, which allows businesses to scan and deposit checks electronically, the company said.
However, not many are credit unions.
Penetration into the CU space has been minimal, since this is generally tied to an institution's involvement with commercial services. We expect to see a strong growth in RDC interest among credit unions in the months ahead that mirrors growth in member business services as a whole, said John San Filippo, marketing manager for Jack Henrys Symitar divisio
How long before we have remote deposit capture foreclosures?
Insighted,
Talk to the greasy hair'd one; beyond that I take the 5th
Cape Codder Drink Recipe
Ingredients
1 1/2 oz Vodka
1 (wedge) Lime
3 oz Cranberry Juice ...
barely writes:
Bucky might be sinking...
You (& CO.) will need to reconsider. The $USD just broke out.
Now I expect a pullback - and I never buy breakouts, I buy retracements - but Bucky is heading much higher this year and possibly for the next few years.
Short the financials; short tech; short gold stocks (on a bounce) if you wanna make money.
Anonymouse
Disagree the dollar is in a 7 year downtrend and if it were to turn around here it would effectively end this long term trend that has seen selling, consolidation and more selling time and again. I say buy gold on dips now may be a good time and stay away from the dollar... How can the dollar go up while equities in the US go down???
IMO this dollar "breakout" is similar to the 1428 we saw on the S&P in June gasp then rollover...
Short gold stocks? Gold and oil, the perfect hedge for the mess we call financials.
GARY DORSCH - COMMENTING ON THE PRESENT (AND FUTURE) TOOTHLESS FED "TIGHTENING" RHETORIC
(All talk and no action. Or as they say in Texas: "All hat and no cattle")
New Buzzword for Commodities - "Demand Destruction"
We Prefer A More Secure Financial Institution - iTulip.com
. One of the most curious developments is the recent strengthening of the US dollar compared to the Euro, in-line with sharply lower oil prices. The US imports 4.5 billion barrels of oil per year, so the latest $30 /barrel decline, if sustained, can reduce America's oil import bill by roughly $135 billion per year. On the other hand, the US is also the world's largest exporter of grains, and projections of foreign sales revenue has just been sliced by 20% in the past four weeks.
Two months ago, on June 3rd, Fed chief Bernanke warned the US central bank "is working with the Treasury to carefully monitor developments in foreign exchange markets, and is aware of the effect of the dollar's decline on inflation and price expectations," a subtle threat of stealth intervention in the currency markets. Yet Bernanke never had any intention of lifting US interest rates to bolster the dollar. Instead, the ECB turned its tough words into action, by hiking its repo rate, yet the US dollar, (not the Euro), was the eventual winner from lower oil prices.
i have not read the entire thread (something i almost always do before posting
hope this is not a re-do...
good article that will not be news to the steady eddies here but confirms much of the POV expressed...a la j Kunstler who is interviewed for this article
suburbia is dying, so this says
Page not found - CBS News
Oh gosh:
furthermore: "Between now and early 2011, crude will put on a show to which the entire move we have seen so far will seem only to be preliminary. Crude is presently in a violent correction within a more violent bull market. $110 to $115 should be the limiting factor to this."
I have to go with this fella, because China demand will impact supply.
36 Visitors Online, WTF is this summer? Here I get a killer deal on Polish vodka and prepare myself for battling windmills and 36 Visitors Online? Oh well, Mock, you seem pretty normal, what's happening man?
Lament, at 704 pm
no harm re posting for the CR swing shift this link for whitney's article
FFDIC scared us all half to death with this during the CR graveyard shift...
read it at 230 am and had to find my teddy bear before bed.
Thar she blows: The last hurrah for the banking system
ECB chief Trichet wasnt afraid to engineer a decline in the Euro-zone stock markets, in order to stamp out inflation psychology. Through the wealth effect, asset prices have an influence on demand, and therefore on future consumer prices. So asset prices are taken into account by central banks, he explained on July 17th. Furthermore, Trichet rejects the Feds practice of ignoring food and energy prices. We do not consider core inflation as a good predictor of future inflation, he said.
However, Trichet was asked on July 18th, if the worst of the global banking crisis was over, We are experiencing a very significant market correction with episodes of turbulence, high volatility and hectic market behavior. It is an ongoing process. The risks to growth are on the downside, including the very significant financial market correction, the possible further increases in oil and commodity prices, and the possible unwinding of global financial imbalances, he warned.
Too little too late...
Would you guys get your act together down there, you are going to f*^# it all up for the rest of us. There must be somebody in that big country that can figure this out and fix it..........
Lament 704
I told you to take a deep breath! July 30th was not that long ago unless you are an FB or have some other financial problems. Don't blame the messenger!
Go read the article again and learn from it so you can protect yourself (ie stay out of debt and protect your cash).
The dollar will continue to tread water as long as the Fed continues to bail out every IB or GSE. These are the facts!
kona lisa
it's not the number
its the quality of those amongst the number
I'm serious about tech leading us down - very soon. I could make a TA case that the NAZ never broke its uptrend line from the '03 run. But if it breaks the July low (where all the untested daily/weekly volume is) then its over and we'll see a waterfall in tech shares.
All of you bloggers are going to burn in Hell and there won't be any more tip jar when the FDIC finishes with you!
Kona Lisa writes:
After thought: Officials say the suspicious activity in the case of Governor Eliot Spitzer was a money-laundering technique known as "structuring." Banks are required to file different forms for all customer transactions totaling $10,000 or more.
kinda reminds me of clinton
sure glad we got spitzer and clinton on them zipper control issues cuse otherwise the country was in peril
now the whitehouse forging letters that falsely report wmd in iraq...hey who cares, thats just "bidness heare en texsas
WordPress.com
mock turtle: My teddy bear has pizza sauce stains on it. That article was awesome. Thanks for the re-post thang.
Pizza Parlors in Corona California:
Pizza Parlors In Corona CA California
Fast Eddie
we are all presently (fdic included) in hell
and by the way
FDIC is already on fire
Re: "its the quality of those amongst the number"
Yes, that seems like sound wisdom, and words which I hope I will recall several minutes from now.
Also, it is bewildering to think of the energy spent by so many people, so many politicians on the even which I recall was named zippergate, where DNA was said to link Clinton to trouble -- but, truth be known, if Lewinsky's DNA had been cross referenced to several members of the Republican Party, then ... then what, what would have happened had the barn door been closed -- so to speak, WTF if, Monica had been wearing a swimsuit and not a dress? The WMD are an easy target, but I like the grassy knoll flashbacks of why Monica brought the dress back home to Mama.
In this simple time which we are in now, it seems as if that is like watching the censored version of Disney reruns of Bambi -- without the gun. That makes sense, doesnt's it?
FFDIC
some day there aint gonna be enuf pizza to go around..
ps by the way, thanks for your all your links over many many months
you are one of the CR faithful that make this place happen.
hey kona lisa
i'm not gonna justify what clinton did...i thought it was just so wrong on many different levels.
but lets face it a woman doesnt just happen to keep a uh-humm stained dress and of course monica had guidance from others.
as deplorable as it was (what clinton did)... it didnt cost the country in lives nor treasure, so i put it in perspective.
my biggest bitch against bill was that he followed repub, phill gramm down the shit hole in signing the legislation which ended half of the glass-steagal act...very wrong.
anyway, its all water under the bridge now...ah or.. water under the reactor cause we are in deep deep voodoo...this doesnt end well
I feel the need to vent:
Shit, WTF, a GD lime for 20 cents, on sale for 3 for $2.00.
WTF, Milkbone Dogbones $3.77 for 26 ounces of crap, and that was at a place I'd rather be dead than shop at, i.e, wal-sucks.
Inflation is in my vacinity and I saw diesel for over $4.00 a gal -- which has me, telling my retarded neighbors that we may see food shortages this winter and challenging inflation (as i ask them if their homes are well insulated and ready for new improved heating bills).
WTF, is up with CR and Tanta -- they need a fucking book -- not this digital shit that has a realtime blog -- you need to start a bible and have an index linked to stories and and comments (such as this) that are related to great topics; wake up! TMF (The Moot Fool's) did that and made a killing, where are you with this, wake up, blogs are great, but people want reference material about the world falling apart -- by the bed at night, when they read a book.
I have also suggested that CR be embedded in some way at Wiki -- the reason being, this shit, this shit right here which I'm typing is going to be pico dust and pixel haze -- no one gives a shit about a two year old blog, but when XMAS comes and they see, CalculatedRisk The Movie -- they'll buy the DVD some night and then maybe a book, because reference books are cool, and TMF sucks!
Mock, I'm with you and the destruction of America is appalling and these Bush Coup years have been very challenging. I can honestly say, I never watch a full speech by this retard. I read books about Lincoln almost every year and enjoy history and economics and this charade of fraudsters has been very difficult to watch. I've been out of stocks in general since the dotcom bust, but I've gone over shitloads of details related to that and to what is going on now, like covered bonds, QSPEs, and derivatives, synthetics, govt statistics... it all makes me sick, but WTF!
I'm sorry, I said a lime was 20 cents, I meant 70 cents.. oops
Re: Sad summer: Economic woes hit European vacations
The article requested is no longer available.
The European summer vacation just isn't what it used to be. With economies stagnating and inflation in the euro zone about 4 percent, people are cutting the length of their holiday stay, vacationing close by, and in some cases, just staying home.
Des Bouillons, a 43-year-old accountant, is forgoing one of France's sacrosanct rituals: The great August lull in which the country shuts down for the entire month, turning cities into ghost towns as the masses hit the beaches or country retreats.
Not only is des Bouillons staying in Paris, he intends to (quelle horreur!) work through August so he can go away off-season once prices drop. "I have to be careful about my budget," des Bouillons said.
Across the continent, Europeans are sharing des Bouillons' pain.
I'm going on a walk, the floor is yours:
UK drivers hit by £500 fuel 'surcharge'
http://www.thisismoney.co.uk/consumer/article.html?in_article_id=449268&in_page_id=5
We have paid 20% more for fuel, on average since 2000, says the poll by consumer price comparison website uSwitch.com. Currently that figure has come down to 12%.
Is this OT?? WTF is topic?
Oh yes, one more thing, just to be sure:
Rising asphalt prices affecting Greenwich Township road projects
http://www.readingeagle.com/article.aspx?id=101848
Supervisor and Township Roadmaster Harry Hoppes said that according to the Pennsylvania Department of Transportation, the price of liquid asphalt has risen from $396 per ton in May to $834 per ton in August, while blacktop has risen respectively from $50 per ton to $79 per ton.
Howsaboutanother Cape Codder?
Anonymouse writes:
I'm serious about tech leading us down - very soon. I could make a TA case that the NAZ never broke its uptrend line from the '03 run. But if it breaks the July low (where all the untested daily/weekly volume is) then its over and we'll see a waterfall in tech shares.
damn straight, AMD should go from like 42 to 5.01...Oh wait, thats priced in already, best short AMD to 2. and , NVDA from 11 to 4....thats the smart money, or even better, INTC from 22 to like 6...
so its unaminous then:
short tech, short financials, short oil, long gold, and of course short US dollar and treasuries...its all coming together..oh yeah, better short RE before its too late...
Dont be afraid to tell the cracker where the smart money is going...
Indymac is paying 4.25% on 1-year CDs. That beats even Countrywide.
WTF is going on? I guess people are worried Indymac is going to fail.
In Idaho, limes are 5/$1. Using a lot for margaritas and bloody marys.
Kona Lisa: You rule Girl
About Clinton: Come on...it was consentual sex between two adults.
How is that f*&^%ing news 8 years later? NO one died, no money was lost. Oh no! He lied...about sex. My heavens!
People who compare what Bill did to what Bush did just fry my A$$.
Now back to the regular scheduled topic:
I'll keep my $1 billion in Vineyard if they pay me 20% interest. Not! I'll take that in 20s please.
Hummm...I wonder why LA banks are crapping the bed...it couldn't be because of all the illegals there. No way.
you rule girl .. LMAO! that was good!
Re (OT): Perseid Meteor Shower To Peak August 11 and 12 Perseid Meteor Shower to Peak Tonight, Tomorrow
Under perfect conditions, observers can expect to see about 90 to100 meteors an hour, said Wayne Hally, a self-professed "meteor geek" who writes a newsletter for the North American Meteor Network.
"The peak [this year] might be the whole night."
Re: In Idaho, limes are 5/$1.
That sucks! Why am I paying 3 for $2? Is there suddenly a lime shortage or a crisis which I'm unaware? I think it may be related to asphalt, but obviously I need to move!
the stock price is still above $2,
, value, value value!
duh i am not in the mood for bank runs this week,
Browsing around I have found a number of banks that appear to be goners as of 3/31 but the FDIC has made no move to close them. And that brings me to the question: do you suppose the FDIC is not closing a number of banks simply because it fears it does not have the necessary funds to do so or that doing do would so deplete its funds that it would be out of business?
FNORD
"Nothing is true; everything is permitted"
Emma Anne:
A modest sized business could easily exceed 100K in a payroll account.
WAWAWA:
"Hot Money" was stolen from all those pallets of hundred dollar bills left unsupervised in Iraq.