Three More Bank Failures: #46, #47, #48
Submitted by
CalculatedRisk on Thu, 07/02/2009 - 1:51pm (59 comments)
in
Shopping at Amazon?
Wait! If you click on the Amazon banner link at the top of the page first, HCN will get a percentage of anything you purchase for 24 hours!
Open predictions
Our local book authors
User login
Who's online
There are currently 2 members and 144 guests online.
Currently online
Recent Recommendations
i didnt get pigged. fdic waiting for corus for monday?
Pigs!
And Soylent!
I wrapped it perfectly. The Z-pig and the first after-market comment. The stops could not have been set tighter. Profit!
Wheeew. Exhale slowly. All is right with the world.
Illinois is the new normal. (And Normal is in Illnois.)
Chewing on pig's ears is my dog's favorite pastime...........
More piglets. I was hoping for a Hawg.
How cute, the FDIC closed some little banks.
"Pigfecta"
What's the secret? Conpigvexity golden snout formations tip you guys off to a new post?
-Tri-quipped
Where are the boys of the Corus?
Need to leave for Merritt Island. Will there be three more oinks before I
get there?
How come only 20% of the failed banks are in "bubble" states?
Wow ... I tried to sneak out for a little bit after the market closed, and the FDIC went crazy.
Three little piggies ...
best to all.
Three little pigs and the big bad FDIC?
@mmckinl from last thread:
What galls me more in the line of "families acquiring wealth" is where two married people with very different jobs, use their families' joint influence networks to make rain for each other. Like the neocon, Wolfowitz, who fell in love with one of his employees at World Bank and then used his position to get her an even better job at State Department. Or the conservative columnist, George Will, who was taking money from private interests associated with his wife, and then writing very positively about them in his columns with no disclosure. We used to declaim this sort of behavior when we saw it in, say, China. There is something broken in a system which not only tolerates this level of corruption, but begins to treat it as normal behavior.
Clearly the current Establishment (both parties) has some answering to do.
I'm guessing that the FDIC got a 2 for 1 deal on deep debt dish pizzas in the Land of Lincoln...
Economists' forecasts:
Good news: Economy may grow. The bad? It won't last | McClatchy
I'll take my lumps. I posited that the FDIC closed five last weekend so they could take the July 4 weekend off. But FDIC people are just CLOSURE ANIMALS. They just can't stop.
Only 3pm on the West Coast- more time-
pigged post:
mmckinl
The estate tax could be managed around- the biggest problem is quite frankly lifestyle.
The rich use the wealth to smooth consumption, but if the level of consumption is too high- goodbye to wealth.
Making the problem even more complex is the changing optimal investment mix. When large country houses went out of style due to the costs of upkeep (viz higher taxation due to WWI), the value of the properties fell to what they could actually produce. Well, with antique agricultural habits and low imported ag commodity prices, they fell to nearly nothing.
Now they are back in style, they are expensive. But look how many stately houses ended up in the National Trusts of England and Scotland due to inheritance taxes (i.e. the money pit costs more to maintain than the cashflow of the "wealthy" hanging on by their fingernails)!
Don't bother being envious of the rich, most of them are not really that rich, nor will their children be that rich ultimately.
I read Vanity Fair, and I think, what a waste some of these kids are, but their children will most likely end up being productive out of necesity.
Someday this war's gonna end...
I would have expected the Elizabeth Taylor Bank to assume at least part of the assets of the John Warner Bank.
@Rob Dawg: I got #2 because I was typing in a comment when hoocoodanode's auto-refresh flashed me the pig with the link. Nothing to it, really. Thanks Ken!!!
Is Wall Street’s Day of Reckoning Still to Come?
“Liar’s Poker” author Michael Lewis hasn’t been a popular guy on Wall Street since he wrote the book 25 years ago. Since then, he has written about finance many times and he is working on a new book about the current financial crisis. Although the banks have been scared and many have been shaken to their foundations, Lewis contends that there may be more upheavals to come. He is also shocked that the Treasury, the SEC and other agencies haven’t really begun to investigate what happened in the subprime mess. He says that when he has interviewed numerous executives from financial institutions, such as AIG’s Financial Products division, they tell him that no one from a regulator has come to try to find out exactly what happened. That fact alone, is simply astonishing."
The regulators want to be able to employ the Sergeant Schulz defense when testifying: "I know nuthink!"
"There is something broken in a system which not only tolerates this level of corruption, but begins to treat it as normal behavior."
Yes. But what is it that is broken?
OT
"Missouri State Representative Cynthia Davis is one tough cookie. Last week she opposed subsidizing school lunches for low income children during summer months saying, "Hunger can be a positive motivator." This is excellent news considering 1 in 5 Missouri kids is living in hunger, so that state is due for a productivity boon."
"then used his position to get her an even better job at State Department"
then you had best not look too closely at faculty hire packages for married couples.
dunno if this has been posted already, but some bank paid 7% at the fed's non-discount window on the 30th
OUCH!
I'll take my lumps. I posited that the FDIC closed five last weekend so they could take the July 4 weekend off.
In another six months, closing five banks may be considered taking the weekend off.
We are, after all, dealing from a deck with a whole lotta black queens.
"He is also shocked that the Treasury, the SEC and other agencies haven’t really begun to investigate what happened in the subprime mess. "
If they did a real investigation, too many of the "wrong" people would be swept up and sent to jail.
In honor, I'm going to order a pizza tonight with some pig meat. May be a long delivery time, the pizza joints appear to be in heavy demand tonight.
two of those banks john warner and the one in winchester are part of founders banks out of chicago.
$44 million worth of chicken-feed failures in just 3 banks means a goliath is about to get squashed and get lost amidst the wreckage...
In honor, I'm going to order a pizza tonight with some pig meat. May be a long delivery time, the pizza joints appear to be in heavy demand tonight.
I hope you live west of the Mississippi. At least then you can beat the FDIC rush.
First National Bank of Beardstown's acquisition...
Is that where the Beardstown Ladies kept their money?
Cool.
CR, you'll need to start charting the progression of weekly bank closings -- things seem to be picking up a bit lately!
Citizen AllenM
I don't envy the rich ... I just despise the way they use their money to
tilt the table further in their favor ... to the detriment of society and the country ...
$44 million worth of chicken-feed failures in just 3 banks means a goliath is about to get squashed and get lost amidst the wreckage...
Like one that, say, rhymes with "torus"?
Wisdom,
folks always have the "dance with them that brung ya" problem.
With power marriages today among the chattering classes it is inevitable.
As a partner in a minor version of one of those marriages, the knowledge of two folks sitting in different parts of the system is much superior to a single vantage point.
Now, does this lead to potentially disparate advantage, well, yes.
Is there anything practical to do about it?
No.
As for advocating for one positions- gee doesn't every single lobbyist do that every day?
We all have our interests- just pay attention to the family and spouse- after all now with the internet you can easily find out all that information- but it was never truly hidden, just obscure.
Someday this war's gonna end...
"The First State Bank of Winchester had total assets of $36 million..."
Some of these banks must be tiny. The bank based in my village, maybe 6 branches, has assets of $1B.
I would have expected the Elizabeth Taylor Bank to assume at least part of the assets of the John Warner Bank.
Or at least Cole Taylor Bank.
A Corus Line...
"Missouri State Representative Cynthia Davis is one tough cookie. Last week she opposed subsidizing school lunches for low income children during summer months saying, "Hunger can be a positive motivator." This is excellent news considering 1 in 5 Missouri kids is living in hunger, so that state is due for a productivity boon."
Maybe not OT after all, considering a previous question:
"There is something broken in a system which not only tolerates this level of corruption, but begins to treat it as normal behavior."
Something is broken in a society in which people feel no responsibility for one another.
In 1991, in a conversation in a kitchen in Moscow, someone insisted to me that "everything would be all right in this country if people simply minded their own business."
He got his wish, and what happened is that they cleaned one another's clocks.
Thus it ever was, and will be.
You can't change people and society that much, just put the means to reign them in into more hands.
I believe that was the lesson of the struggle of Parliment against Charles? No?
Only when you have sufficient political concensus do you get the Velvet Fist of Government, instead of dictat.
Someday this war's gonna end...
I hope you live west of the Mississippi. At least then you can beat the FDIC rush.
Nope, Illinois. They just told me 20 minutes, but I'm picking them up.
A lot of these small banks(like the ones in Georgia) are a couple of RE developers and a small town politicians playing Andy Hardy.
"Hey, let's put on a bank!"
I really miss good pizza
/mourn Gino's
TJ and The Bear, good suggestion - the pace seems to be picking up. Of course maybe they wanted to close a few small ones early today and then take a long weekend.
A Corus or a Guaranty - and those FDIC agents will be working the whole weekend.
best to all.
And the geek corus screams on BFT:
"hoocoodanode!?"
"then you had best not look too closely at faculty hire packages for married couples. "
Seen it. But nothing beats the strange tale of the openly gay UC chancellor, her 200K girlfriend, and the $30,000 dog run.
No folks Bob is not talking about p0rn, it's true.
no worries. peanut banks. we are strong. 90.5% employment. stop dooming pplz!
Sung to Boys of Summer:
Nobody in HQ
Nobody in the branch
Pizza smell in the air
FDIC through the breech
Empty vaults, empty balance sheet
The bank goes down alone
They're driving by your headquarters
Shelia Bair on the phone
First is Nemo
Rob Dawg and a lady in a thong
Another drink thrown back
It's bank failure Friday
I can tell you
The commentariat will still crack strong
After the boys of Corus are gone
He is also shocked that the Treasury, the SEC and other agencies haven’t really begun to investigate what happened in the subprime mess.
Oh, me too. As in, "shocked, shocked to find that gambling is going on in here!"
Except, in this case, I and my fellow taxpayers get to pay the Captain his winnings. Lucky us.
three more, fellas. for a total of six today. how many haikus can we take in one afternoon?
The BFT banks today are not part of Founders Bank, they use Founder's ATM netowrk.
Ugh. Try 59.5% employment
.
Still, we are strong and I will stop dooming.
Somebody order more pizza:
Millennium State Bank of Texas, Dallas, TX
The First National Bank of Danville, Danville, IL
The Elizabeth State Bank, Elizabeth, IL
They can't be stopped and this isn't "contained."