The Back Alley Archives

She needs to be forced out, NOW, because she has blatantly and obviously LIED repeatedly about the FDIC's stability. She's been saying all along that they had plenty of money and there was nothing to worry about. Now this:

“Without these assessments, the deposit insurance fund could become insolvent this year,” Bair wrote in a March 2 letter to the industry. U.S. community banks plan to flood the FDIC with about 5,000 letters in protest of the fees, according to a trade group.

“A large number” of bank failures may occur through 2010 because of “rapidly deteriorating economic conditions,” Bair said in the letter. “Without substantial amounts of additional assessment revenue in the near future, current projections indicate that the fund balance will approach zero or even become negative.”

http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=alsJZqIFuN3k

Read the whole article--it shows the FDIC's ineptitude. Why should every bank pay the same fee regardless of risk? Why is every other fucking insurance policy in the world sold according to RISK? Is it because that's the only sensible way to charge for insurance? I think it is! But we'd rather punish the smaller banks who have done NOTHING WRONG and basically rape their profits in order to pay for the fuckups of terribly run banks.

Why can't your boy get anything right slider? I'm pretty sure he's Bair's boss, isn't he? He needs to fire the dumb bitch, NOW.

Sheila C. Bair is the Chair of the U.S. Federal Deposit Insurance Corporation (FDIC). She was appointed to the post for a five-year term on June 26, 2006.

If she was appointed, then she serves at the pleasure of the President of the United States, doesn't she?

i've not read it wes but it's on the 'to-do' list for sure.

i'm particularly interested in how sheila bair is depicted because the last time i saw her, she was on 'the hill' (along with hammerin hank) bragging about how tight she has the FDIC running...senators waters, frank and the dude from mass were all up in her ass about how she's actually getting the TARP money down to the homeowners that need it.

I'm just pissed because she's lied this whole time saying they had plenty of money when we all have known for months that they were on the verge of being insolvent.

I see what you are saying AA. I read into it that she was an Obama nomination. Nevermind.

Werd...I see where you could get that drift from my original post.

Several interesting comments here: https://www.blogger.com/comment.g?blogID=3782644139927778760&postID=3514808761436975492&isPopup=true

FDIC press release from Sept. 25, 2008 showing their willful ignorance:

Bloomberg reporter David Evans' piece ("FDIC May Need $150 Billion Bailout as Local Bank Failures Mount," Sept. 25) does a serious disservice to your organization and your readers by painting a skewed picture of the FDIC insurance fund. Let me be clear: The insurance fund is in a strong financial position to weather a significant upsurge in bank failures. The FDIC has all the tools and resources necessary to meet our commitment to insured depositors, which we view as sacred. I do not foresee – as Mr. Evans suggests – that taxpayers may have to foot the bill for a "bailout."

http://www.fdic.gov/news/news/press/2008/pr08084.html

From tomorrow's WSJ (published online already):

WASHINGTON -- Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department.

The Connecticut Democrat's effort -- which comes in response to urging from FDIC Chairman Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner -- would give the FDIC access to more money to rebuild its fund that insures consumers' deposits, which have been hard hit by a string of bank failures.

http://online.wsj.com/article/SB123630125365247061.html

Don't get me wrong--the deposits have to be covered one way or the other, so I'm not saying we shouldn't do whatever we have to do to make sure insured deposits are repaid in full.

I'm just saying...I wonder why they raised their line of credit from $30 billion to $500 billion, nearly 17x more. It's kind of ironic...by making the line of credit so HUGE, they have me kind of freaked out, wondering how big the problem is going to get.