Market and FDIC Insured Banks with High NPAs
Submitted by
CalculatedRisk on Fri, 05/29/2009 - 12:15pm (58 comments)
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First.
Has anybody called 'Double Dip Recession' officially? If not, I would like that honor.
Hahaha... today just proves in spectacular fashion what these markets really are.
Corus! Corus! Corus!
Corus, Vineyard will stress the TBTF theory.
Mmm BFF and a bottle of wine. If today's close was EOM tape painting, does that mean a big sell-off on Monday?
ac,
agree. although with 600k contracts going off in the last 2 minutes, what are they going to do to top it next month? Maybe Ben and Tim were just being nice by providing a bid for everyone to sell in May and go away.
No biggie. None of those banks are systemically important. Just like the middle class.
All we have to do is bailout the top 1% of wealth holders and the financial system will be fine. The rest of America will be subjected to "free" market forces.
I would sell long positions for the market, she is about ready to capsize for a period of time. You can see the writing on the wall.
50% of highest tier are in GA ... I wonder if CA, FL, NV et al are still fudging their data
"Corus! Corus! Corus!"
Sounds Shakespearian. Is this a tragedy and if so, in how many acts?
well, speaking as an alarmist, i was quite surprised by the largish rally in bonds today.
hoping for a news blackout again this weekend....
that ramp at the close smells of a stick-save.
ac,
agree. although with 600k contracts going off in the last 2 minutes, what are they going to do to top it next month? Maybe Ben and Tim were just being nice by providing a bid for everyone to sell in May and go away.
The problem is with a fiat currency as long as the government is willing to cooperate in the creation of asset bubbles there's really no upper limit on where these markets can go.
Of course we're getting to the point where increasingly these bubbles will generate no material wealth, but it takes discipline, foresight and wisdom to really put a stop to these things.
These are qualities that do not exist in the culture we live in.
Dryfly:
Did you see the Chicago PMI today?
Anyone from Cali:
What are the chances of these proposed budget cuts actually going through. I still think Obama will bail out CA at the last minute.
The ramp was manipulation to see how many shorts were left to squeeze. Grande money has moved into treasuries and other debt instruments. Basically down the market will go. My guess some "regression" of some econ data like ISM and GM bk over the next 8 weeks will help in that regard.
Retest 6400 again? Or just glide down to 6800 by Augest?
What the hell, grand slam. I'm taking 4 for BFF.
that ramp at the close smells of a stick-save.
If everyone keeps repeating these lines, sooner or later, they'll be right.
Broke, but right.
The entire markets for the past 2 months have been nothing but manipulation. If history is any indication, attempts at price fixing always end in spectacular fashion. I expect it will be no different here. I look forward to the day that Bernanke get's his due. His willingness to debase the currency, throw the taxpayers under the bus, bailout the crooks, and manipulate all facets of the markets are indeed a testament to his arrogance and stupidity. History will not be kind. Nor will the people, when he loses control.
"there's really no upper limit on where these markets can go."
Well we have seen upper limits in housing, NAZ and commodities in the past decade. Bonds and/or Dollar next I presume, when Ben's thumbs tire?
I don't think it was a stick save. I think it was the program that's been buying for the last 2.5 months buying all the way up to the 200 day SMA on the S&P/ 8500 on the Dow. It was the plan all along.
The ramp was manipulation to see how many shorts were left to squeeze. Grande money has moved into treasuries and other debt instruments. Basically down the market will go.
I tend to agree. I've been very conservative with shorts recently, but I couldn't resist after that megaramp and put on some short positions in the futures market after the close (ES contracts). That probably means they'll open up another 15 points on Sunday and the SPX will gap up 30 points on Monday.
Anybody see the FDIC press release that banks under stress will no longer be able to offer above market interest rates on deposits? Doesn't start until 2010 though. Corus would be a goner already if not for gaming the system.
Editing to add link:
FDIC tweaks rule for banks' interest rates - MarketWatch
Money quote: "The subjectivity in our current rule is allowing some weak banks to drive up costs for the rest of the industry," said FDIC Chairman Sheila Bair in a press release"
Yeah, because all the banks are offering such great rates on deposits these days, Sheila.
"there's really no upper limit on where these markets can go."
Well we have seen upper limits in housing, NAZ and commodities in the past decade. Bonds and/or Dollar next I presume, when Ben's thumbs tire?
Well I was thinking about how Zimbabwe's stock market went up 10,000% in a year not so long ago IIRC.
That probably means they'll open up another 15 points on Sunday and the SPX will gap up 30 points on Monday.
Naturally. The GM bankruptcy hasn't been priced in yet.
"banks under stress will no longer be able to offer above market interest rates on deposits?"
They'll start offering toasters or thumb drives to get you to put your savings with them. We've seen this movie before.
Go Georgia! We're #1. We're #1.
Found these bargain homes sales in a corner of the FDIC's website. All homes ranging between $6-10K each. Some of the descriptions include the phrase "still occupied." Doesn't specify by whom, or what, however:
FDIC: Bargain Properties
One third non performing???? One third???
odd, when I went to that URL, it got redirected to:
FDIC: Error 404 - Page Not Found
swamp otis (homepage, profile) wrote on Fri, 5/29/2009 - 4:22 pm
well, speaking as an alarmist, i was quite surprised by the largish rally in bonds today.
I wasn't. One end of the stick is the Treasury. One end is the dollar. Ben can make the stick as long as he wants, and hold it as close to whichever end he wants. The only things he can't do are make the stick shorter or avert the fact there is a nonspecfic length he can no longer support.
Conjure's hairier relatives!!
One third non performing???? One third???
You are obviously a "glass is half empty" kind of person. I mean come on - 66% is working out alright for them currently. At least until next month when another 10% go late...
"I look forward to the day that Bernanke get's his due. "
My guess is he hangs from a noose in the first day of the Revolution.
I wasn't. One end of the stick is the Treasury. One end is the dollar. Ben can make the stick as long as he wants, and hold it as close to whichever end he wants. The only things he can't do are make the stick shorter or avert the fact there is a nonspecfic length he can no longer support
Bernanke had nothing to do with that directly. The trade is changing.
"My guess is he hangs from a noose in the first day of the Revolution."
...
why bother with those stock graphs anymore. they are in USD, aren't they?
I compared the names CR listed against bank data from the FDIC website which I downloaded and sorted ROE and Security Bank of Gwinnett was 8th worst.
ghostfaceinvestah (profile) wrote on Fri, 5/29/2009 - 4:48 pm
My guess is he hangs from a noose in the first day of the Revolution.
Revolution? No way. Command-control interdiction warfare is too developed and too pervasive. Nobody will be allowed to organize effectively until the state collapses. The only way Ben's going to hang is by his own hand.
His own hand would be satisfying.
Eras End (profile) wrote on Fri, 5/29/2009 - 4:48 pm
Bernanke had nothing to do with that directly. The trade is changing.
Curious what you mean.
By definition, the only price fixing you see are the failures.
Comex has probably been rigged for the past fifteen years.
In case any government types are following this blog, by "his due", I want to be clear that I was referring to the glorious praise of our grateful nation. I wasn't advocating violence of any kind. Thanks!
"Found these bargain homes sales in a corner of the FDIC's website."
FDIC is going to convey the properties with a "Quick Claim Deed". Lord, help us....
When is the public going to realize the fed's liquidity scams don't promote economically produtive endeavors. Rather, they encourage more and ever larger shams.
For crying out loud, our national accounting system CONsiders increases in the prices of land and existing houses as wealth.
Productive work is for suckers. Selling shams and gathering inflation is the path to wealth in a check book money system.
Bernanke fears deflation because it will end the debt money system. Absent Bernanke's printing, this sucker would have gone down.
Gotta love that wet paint into the close. 52K futures contracts between 3:55 and 4:00 PM. Somebody needed a really good May to keep the doors open.
(And, parenthetically, sweet jeebus, is there a way to be rid of that disturbing LendGo ad with the screaming bobbleheaded woman?)
Appropriate for pigged lower threads.
Today I had 2 people wanting me to go over leases and see if they are being overcharged.
The word is getting around about commercial lease prices dropping. Of course, I've looked
at leases before, but never for a lease already in effect, for people complaining about taxes
being included (they usually are I say) or CAM being too high. I told one guy to send his
nephew in to review the lease, and that he should start looking around for real for something
nicer and cheaper, so it isn't just a game of chicken. This does not bode well for landlords.
FDIC Tightens and Clarifies Interest Rate Restrictions on Institutions That are Less Than Well Capitalized
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today issued a final rule changing the way the FDIC administers its statutory restrictions on the deposit interest rates paid by banks that are less than well capitalized.
The Federal Deposit Insurance Act requires the FDIC to prevent banks that are less than well capitalized from soliciting deposits at interest rates that significantly exceed prevailing rates. The FDIC's current regulation ties permissible interest rates paid by these banks on some deposits solicited nationally to the comparable maturity Treasury yield, and ties permissible interest rates on deposits solicited locally to undefined prevailing local interest rates.
I guess they've got more fire eaters hired.
Quick claim deed is actually very common. Quilt claim deeds are somewhat rarer.
eventually lack of earnings will catch up to stocks. the fed will be blamed for any sudden collapse. they are clearly, totally committed to debasement and locked in a whack-a-mole death match. as an alarmist, i gotta say it looks like the fed doesn't care about appearances, like they don't plan on being around for the consequences.
I want a graph of the number of CR's daily posts, over time.
byz, i was being a little facetious about being surprised by the largish rally in bonds today. i see the shill buying up close every day, however, today took the cake. the bond market is Hyoooooge.
one surprising thing about today was lack of interest in GDP being down 5.7% from being down 6.1% previously. i think people must believe that GDP stops falling if the percentage decline goes down.
another thing was currencies have dislocated from US markets and US interest rates. they are going on their own path.
porked
"His own hand would be satisfying."
Not as satisfying as Greenie.
What is it about Georgia banks?
As Rajesh above notes, Georgia has more banks on the NPA list than any other state.
Also, I think Georgia is Number 1 on the list of banks closed by FDIC this year.
I'm not aware that the housing boom in GA was that great (possibly around Atlanta) although there may have been opportunities for making bad mortgage loans. Also, I don't see GA banks figuring in the securitization and leverage process of the ex-ISBs in NYC.
Why are Georgia's banks in such poor shape???