In their latest efforts, the FDIC wants to see some technology continuity plan that will make its job easier in determining who has FDIC insurance and how much. The last debacle with NetBank and ING did not work out as smoothly as they planned. Remember, the FDIC only takes a bank into receivership on a Friday, with the hopes of an orderly transfer to another institution, if there is a white knight for depositors. To make this transfer within one weekend required significant planning; imagine attempting to do the same with a huge institution. With a myriad of products, married customers with different names, adulterous husbands and wives with secret accounts, and every possible form of entity ownership, the FDIC has quite a job in its hands with any bank failure much more so with one of the largest 159 institutions.

Although these plans were proposed in 2005, the recent urgency may have much more to do with the impending writedowns and mark to market actions these large institutions must undertake in 2008. No longer will auditors stand idly by as ingenuous accountants parlay losses into future quarters. No longer will regulators stand by as banks refuse ratings worthy of some merit.

Unfortunately, the FDIC report demonstrates the unwillingness and perhaps inability of these large institutions to come up with a comma separated file identifying all insured depositors. YOU MUST ASK YOURSELF, IF MY BANK CANNOT COME UP WITH A LIST OF INSURED DEPOSITORS IN A TIMELY MANNER WHY ARE THEY TRADING CDO’S AND COMPLEX DERIVATIVES! THE FDIC SHOULD IMPOSE THEIR FIRST RECOMMENDATION ON COVERED INSTITUTIONS.

While they are at it, the FDIC should have these banks setup a bankruptcy reorganization plan premised on all depositors removing their funds. Maybe that dreary annual practice will sober up some banks to the dreadful reality of this confidence game.

Please e-mail Comments@FDIC.gov about “Processing of Deposit Accounts and Insurance Determination Modernization” in the subject line of the message. Tell them you support whatever is necessary to assure depositors their deposits will be safe. Although the banks estimated these changes may cost 2-8 Million USD, the amount of losses in current writedowns demands these large institutions provide more assurances.

Make your suggestion to the FDIC Strategic Plan!

Don’t they have enough of their own problems?

“In Taiwan’s bank auctions, the winning bidder
receives money from the government to take over sound assets,
including branches, and at least half of the employees.” – Bloomberg…

As long as Citigroup can get the money to pay my dividends in the US…whether it be from the Federal Reserve of Taiwan’ central bank… its all OK.

Globalization is G-R-E-A-T!

Now it makes sense as to why they only helped the Worldwide United Banking System with only a minuscule $4 Billion Dollars.

Good Luck Bernanke, you need it. If the Swiss will only help out with $4 Billion we are in TROUBLE!

BTW, if any Swiss Central Bankers read this, please translate the insolvencies in English. It would help cooperation between some regulators in the United States and abroad. Clearly, some futures swindlers are operating in both jurisdictions… Please some cooperation, you gave $4 Billion…

Goldman Sachs has learned an important lesson in politics, don’t stop donations until the fat lady sings. While Goldman Sachs can hedge their bets with their public offerings and selling crap to some clients, they have yet to learn how to hedge their political bets. Instead of leaving Chris Dodd high and dry, a couple donations each month from a couple of managing directors could have prevented such a public attack. Imagine Hank Paulson, sworn in, and compelled to discuss Goldman’s subprime fear and greed strategy in front of the Senate Banking Committee on live TV…

Either Goldman Sachs should continue with their campaign contributions or Chris Dodd should refund their contributions. At this point in time, Goldman Sachs might as well add Kucinich and Paul to their list of contributions, if this crisis does indeed turn out like their economists predict it might be money well spent. Ron Paul as President and Ben Stein as Secretary of the Treasury Department… Could that resolve the Subprime/ABX Index/Lack of Confidence/Cialis problem???

Just sort the info by date, you will see what I mean…

EXCEL FILE – Chris Dodd’s Goldman Sachs Donations

GNUMERIC FILE – Chris Dodd’s Goldman Sachs Donations

“The chairman of TMSF (Savings Deposit and Insurance Fund) Ahmet Ertürk stated that they are working under war circumstances and the collection will amount to $17 billion at the end of the year.”

$60 Billion spent to compensate depositors and they have only recovered $16 Billion from 21 lenders. A 26.6% recovery rate… Does this indicate or say anything about collections elsewhere? Maybe Turkey can join the EU and show the ECB how to do things.

At least Trichet has someone’s shoulder to cry on…

The Reserve Bank of Zimbabwe is on a witch hunt to find “cash barons” otherwise known as cash hoarders. They blame Christmas but the reality is most of these institutions are owned by multinational banks. Barclays is having difficulty providing cash in the amounts up to $25USD (Z$50 Million) . Amazing! This has serious implications worldwide with respect to confidence. Understandably so, Zimbank and the Commercial Bank of Zimbabwe are also having difficulties but their reserves do not compare to Barclay’s
worldwide reserves. When Barclays refuses to provide Zimbabweans with a measly $25USD, what does that say about our British or American friends? When will Barclays turn on you and pay your with George Bailey’s Honeymoon cash?

Confidence is not a game its state of being… When depositors in one side of the world are refused access to their monetary notes, depositors in the other side of the world should ask questions. Will Bank Failures cause the consumer led recession? With these sobering facts surrounding us, isn’t it time you looked at our Solutions/Alternatives on WWW.BANKS-IMPLODE.COM

Looks like Meredith Whitney has some company now.