IS THE FDIC BROKE? HOW COULD THAT BE?
All of the networks are "buzzing" today, saying that the FDIC is going to ask banks to pre-pay their FDIC Insurance Premiums for the next three years. This will bring in roughly $15 Billion for each year that is "pre-paid". Why are they taking such a drastic action? They say that they need to "shore up" their FDIC Fund, due to the large amount of bank failures this year, and they don't want to borrow from the Treasury, as this would appear to be yet another "bank bail-out" in the American Taxpayer's eyes. This MSNBC article that just came out explains it all.
Where did all the money go, you may ask?
Loss Share Agreements! (Ok, not all of it, but A WHOLE BUNCH OF IT)
I explain it in a blog titled, "Is The FDIC Killing IndyMac OneWest Bank Loan Modifications & Short Sales?"
I actually got an email today from someone who wrote a blog on the same subject after reading my IndyMac OneWest FDIC blog. She decided to take it down out of fear. She found out that the FDIC had visited it 30 times in 2 days, and she got nervous. I guess they're a little concerned about this kind of information getting out to the general public. Can't say I blame them. I'm not internet savvy enough to figure out how to determine who has visited my blogs, but maybe someone can tell me?
The case that my IndyMac OneWest FDIC blog revolves around will be featured in a major business news publication at the end of this week. I can only hope that it raises the awareness of the American Public.
Finally, American Taxpayers are going to find out about the shady "sweetheart deals" that the FDIC has been cutting with the likes of none other than George Soros (you know, the MoveOn.org guy). Maybe our fearless leaders will now take notice of where all of this money is going (but I'm not holding my breath)!
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Copyright © By Bob Hertzog 2010 *Is The FDIC Broke? How Could That Be?*