« Wizbang Weekend Caption Contest™ | Main | Cash for Clunkers round-up »

Big Banks Admit They Are Still In Trouble; Beware Of Happy Talk

Yesterday the FDIC added another 100 or so troubled banks to its "official list" of problem institutions. The problem with these FDIC announcements is that there are actually two lists of banks that taxpayers should be worried about. There is the list just mentioned and then there is this list.

While the FDIC continues closing smaller banks and making noises about the need for more FDIC funding to guarantee the deposits U S banks, the Federal Reserve is openly admitting that that if taxpayers find out how sick the big, systemically "too big to fail institutions" actually are there may be another financial panic. I have written before that there is a big FOIA battle going on between the Federal Reserve and Bloomberg about the release of information that reveals the details of over three trillion dollars in off budget bailouts conducted by the Fed. This from Zerohedge:

The Clearing House Association, another name for all the banks that were bailed out over the past year with the generous contributions from all of you, dear taxpayers, are now threatening with another instance of complete systemic collapse if Bloomberg's lawsuit is allowed to proceed unchallenged, let alone if any of the "Audit The Fed" measures are actually implemented.

As a reminder, The Clearing House Association consists of ABN Amro, Bank Of America, The Bank Of New York, Deutsche Bank, HSBC, JP Morgan Chase, US Bank and Wells Fargo.

In a declaration filed in the Bloomberg Case (08-CV-9595, Southern District of New York), the banks demonstrate no shame in attempting to perpetuate the status quo with regard to the Federal Reserve and demand that the wool over the eyes of the general population remain firmly planted in perpetuity.

(from the bank's filing) ....."The Clearing House submits this declaration because the Court's Order threatens to impair the ability of our members to access emergency funds through the New York Fed's Discount Window without suffering the severe competitive harm that public disclosure of their identity will cause."

"Our members have accessed the New York Fed's Discount Window with the understanding that the Fed will not publicly disclose information about their borrowing, especially their identity. Industry experience, including very recent and searing experience, has shown that negative rumors about a bank's financial condition - even completely unfounded rumors - have caused competitive harm, including bank runs and failures."

The actual filing is here.

The issue of central bank secrecy has been gaining momentum for years, particularly since Bretton Woods. Taxpayers have a right to know more information in this era of massive bailouts. Will the Obama administration use the occasion of Chairman Bernanke's
reappointment to demonstrate it's much vaunted transparency? Ok, stop laughing, that was a rhetorical question.

Fixed the link, had to use another source. But wait, there's more:

A must read at Clusterstock on the same subject:

Bloomberg sued the Fed to force it to reveal the names of the banks that have dumped all their crap assets onto the Fed's balance sheet (a.k.a., the taxpayer).

And Bloomberg won!

But the Fed is still refusing to reveal which banks it has secretly bailed out. And the Fed is now appealing the ruling.

The Fed says its refusal to reveal the names is about "competition." Please.

Paul Kasriel of Northern Trust explains the real reason: The Fed is scared to death that the revelation will trigger another run on some banks

How many plates do they have spinning in Washington now?


TrackBack

TrackBack URL for this entry:
/cgi-bin/mt-tb.cgi/36622.

Comments (24)

HughS,I can't get ... (Below threshold)
Conservachef:

HughS,

I can't get that second link to work- it looks like the prudent investor address is bad.

There is a legitimate need ... (Below threshold)
Mac Lorry:

There is a legitimate need for secrecy in private business and in some parts of government, but the public's right to know should take precedent when private business depends on taxpayer money to stay in business.

Until there's full disclosure the best method of avoiding a secretly troubled bank is to make sure they never took or already paid back the toxic TARP funds.

So when is the left going t... (Below threshold)
jim m:

So when is the left going to take up the chant: Obama lied and our finances died?

crickets chirping.....

Yep, waiting to see some of... (Below threshold)
GarandFan:

Yep, waiting to see some of that Obama "transparency". You want taxpayer money, open up. You want to play "I've got a secret", go get your money somewhere else.

Our enemies get to know how... (Below threshold)
ODA315:

Our enemies get to know how we extract information from them but we can't be told where 2 trillion dollars of OUR money went. Change we can believe in.

Take your profits and sell.... (Below threshold)
drjohn:

Take your profits and sell.

TARP has underspent estimat... (Below threshold)
Victory is Ours:

TARP has underspent estimates by a couple hundred billion and our financial institutions are bouncing back with the great quarterly profits, so clearly the Bush Bank Bailout that fell to Barack and Bernacke has been managed to perfection.

Thank God we didn't have Bungling George "You're doing a Great Job, Brownie" Bush and his band of bumbling bufooons behind the wheel when the important work had to be done.

I have 25% of my stock portfolio in a Fidelity Banking Fund - ticker FSRBX - and it's up 16% in the last 30 days.

I don't listen to people like HughS and the group of nay-saying nincompoops who haven't a clue and only want to spit on the President.

My portfolio is up 60%+ since Barack was inaugurated January 20th.

Vic

The problem is that a large... (Below threshold)
JustRuss:

The problem is that a large part of Bernenke's job is to put a good face on everything. He simply cannot tell the truth or risk full blown depression and a run on the banks.

This information however needs to be made public now! The economy is going to crash, all we have done is add a little fuel to the tank so that it takes longer to hit the mountain. What people should be doing with this time is getting ready for it rather than hoping it will make it over the hump.

The evil of TARP was not th... (Below threshold)
jim m:

The evil of TARP was not that it provided liquidity to banks that needed it, but rather that it provided it at a cost of government ownership of the banks.

At first it was in preferred shares, but then the demand to convert to common stock came. Then meddling with executive and employee compensation.

Additionally, some banks were forced to take funds when they felt they didn't need them and were refused the chance to repay them and get out from under the government's thumb.

The use of government power to coerce and control private industry is one of the key identifying features of fascist governments. Obama has already done this with Banks via TARP, he has done it with the auto industry, Cap and Trade will do it with the energy industry and the Health Care bill will do it with Health Care, insurance and Pharmaceutical industries.

You may not like the description and you may disagree with the application, but it does fit. This doesn't make Obama a fascist, but he is acting in that manner.

Vic,I am extremely... (Below threshold)
JustRuss:

Vic,

I am extremely happy for you and your portfolio. I sincerely hope you are right about this because I really really do not want to see a depression, even if it means Obama gets reelected. IF things truly are on the up-and-up then despite my dislike of the man and his politics, a competent administration and a healthy economy are worth more to me than personal politics.

I hope you are right, but running the economy on a phantom few phrases and figures put out by the Fed will only prolong the time until the collapse. At which point your 60+% won't mean much.

Again, I hope you are right and I am wrong.

If inflation really gets go... (Below threshold)
jim m:

If inflation really gets going having a portfolio making 60% could be just treading water.

Hope it's not the case.

Vic, Uncommitted T... (Below threshold)
apb:

Vic,

Uncommitted TARP includes $70B in returned funds and only $80B originally uncommitted - not exactly hundreds of $B. It's great you're earnings are up - can't wait to hear about your capital gains tax payouts. The real point of the article is the obfuscation of the Jug-Eared Douche's administration.

That's really good performa... (Below threshold)
HughS:

That's really good performance Vic. The S&P 500 is only up about 22% in the same time frame. You're up 60%. How did you do it?

He lied... (Below threshold)
jim m:

He lied

With the MSM 'talking up' t... (Below threshold)
GarandFan:

With the MSM 'talking up' the economy and Paul Krugman now saying 'hey big deficits are a good thing', I'm surprised we haven't fully recovered by now. After all, Sheriff Joe says we're gonna SPEND our way to prosperity.

Anyone out there feeling prosperous? Besides VIC, who's busy counting his non-existent ObamaBucks.

I believe Vic as much as I ... (Below threshold)
WildWillie:

I believe Vic as much as I believe Obama.

My stock portfolio plummeted 70% since Obama came in.

See how easy it is? ww

Really Vic, Care to ... (Below threshold)

Really Vic,
Care to verify that your portfolio is up 60
per cent, or are we buffoons supposed to take
your word for, by falling off of the last cabbage truck last night.

"Care to verify that you... (Below threshold)
Victory is Ours:

"Care to verify that your portfolio is up 60
per cent, or are we buffoons supposed to take
your word for, by falling off of the last cabbage truck last night."

No, I wouldn't expect buffoons to just take my word for it, because buffoons who believed the BS that Obama was going to drive the country into financial ruin also wouldn't notice that the S&P 500 was at 1440 on January 20th and that it now stands at 2028, an increase of 41%.

So the tech stock index is up over 41% by itself since the day Obama took office.

I've done better than the stock index, which isn't difficult if you know how.

"My stock portfolio plummeted 70% since Obama came in.

See how easy it is? ww"

Yeah, then there's the buffoons who claim they lost 70% in a stock market that is up over 40%.

Those are the "buffoons" that are giving people the bad advice.

And of course other buffoons would never bother checking the stock market index to see how high the market has risen since Obama took office, and they'd believe the buffoon.

But then it is definitely possible for a buffoon to lose 70% in a stock market that has risen so high so fast. From reading ww's past comments it is a distinct possibility.

And there's HughS - who doesn't show you that the NASDAQ is up 41%....

and so on. I have three accounts, two are up over 60% and one is up 48%. I haven't averaged the three and calculated the total, but it's around 60%+ The 48% gain is in the smallest account.

Keep on believing the people who haven't a clue, Maggie, but look at what it's cost Americans so far this year to follow the hate that the right wing spews and who stayed out of the stock market.

Vic

Vic says:No,... (Below threshold)
HughS:

Vic says:

No, I wouldn't expect buffoons to just take my word for it, because buffoons who believed the BS that Obama was going to drive the country into financial ruin also wouldn't notice that the S&P 500 was at 1440 on January 20th and that it now stands at 2028, an increase of 41%.

Vic

The S&P 500 closed at 805.22 on January 21, 2009. It closed at 1028.93 on August 29,2009.

There's an easy to use link in my comment #13 above to verify the data. I don't know what S&P 500 you're looking at but your information is incorrect. Put the shovel down.

I meant to say NASDAQ, so h... (Below threshold)
Victory is Ours:

I meant to say NASDAQ, so here's the correction.

No, I wouldn't expect buffoons to just take my word for it, because buffoons who believed the BS that Obama was going to drive the country into financial ruin also wouldn't notice that the NASDAQ was at 1440 on January 20th and that it now stands at 2028, an increase of 41%.

So the tech stock index is up over 41% by itself since the day Obama took office.

I've done better than the stock index, which isn't difficult if you know how.

Feel free to explain why you'd ignore the NASDAQ's meteoric gains of 40%, HughS. I did say "tech stocks", didn't I? You wet out of your way to cite an index which only gained 20%+ percent.

ONLY gained 20+ percent in 7 months. Damn good return there, but the NASDAQ did a whole lot better, and I beat the NASDAQ handily. Networking and Infrastucture investments early on in the year, Energy services and Banking later. My banking fund is up over 5%in the last month alone.

Why did I do so well?

Because I didn't listen to people like you, HughS, who haven't a clue about the economy and the stock market, but seem to hate Obama and the Democrats so much that you can't help but post misinformation and bad advice.

Vic

Sorry, another correction</... (Below threshold)
Victory is Ours:

Sorry, another correction

My banking fund (FSRBX) is up over 15% in the last month alone.

The Net and Infrastructure fund I used was FNINX. Got out of that several months ago.

Nice shovel.

Vic

Here's the energy services ... (Below threshold)
Victory is Ours:

Here's the energy services fund (FSESX). Up almost 50% year-to-date.

Preying off off the American people's fears is the tool of the right. Bush and the GOP terrorized our nation as well as the Middle East in order to stay in power in 2004 and today we see the right using those same tactics in an attempt to regain power. Scaring the elderly about health care and economic ruin and doing a great disservice to this country ever since Obama took office. It's shameful.

Sorry for the multiple posts, but I was accused of being a liar. I'm not lying.

Now widdle willie - were you lying about losing 70% in this stock market? Are you a liar or a buffoon (or both?).

Vic

Vic has done so well by his... (Below threshold)

Vic has done so well by his portfolio,
according to him, he will be finely stocked in toilet
paper.

Vic, If your portfo... (Below threshold)

Vic,
If your portfolio is doing so well, how is
it you are spending so much time posting on a
blog? It would seem with the money rolling in
you'd be a lot busier looking after your
material rewards.
Cabbage, trucks, and all that.




Advertisements









rightads.gif

beltwaybloggers.gif

insiderslogo.jpg

mba_blue.gif

Follow Wizbang

Follow Wizbang on FacebookFollow Wizbang on TwitterSubscribe to Wizbang feedWizbang Mobile

Contact

Send e-mail tips to us:

[email protected]

Fresh Links

Credits

Section Editor: Maggie Whitton

Editors: Jay Tea, Lorie Byrd, Kim Priestap, DJ Drummond, Michael Laprarie, Baron Von Ottomatic, Shawn Mallow, Rick, Dan Karipides, Michael Avitablile, Charlie Quidnunc, Steve Schippert

Emeritus: Paul, Mary Katherine Ham, Jim Addison, Alexander K. McClure, Cassy Fiano, Bill Jempty, John Stansbury, Rob Port

In Memorium: HughS

All original content copyright © 2003-2010 by Wizbang®, LLC. All rights reserved. Wizbang® is a registered service mark.

Powered by Movable Type Pro 4.361

Hosting by ServInt

Ratings on this site are powered by the Ajax Ratings Pro plugin for Movable Type.

Search on this site is powered by the FastSearch plugin for Movable Type.

Blogrolls on this site are powered by the MT-Blogroll.

Temporary site design is based on Cutline and Cutline for MT. Graphics by Apothegm Designs.

Author Login



Terms Of Service

DCMA Compliance Notice

Privacy Policy