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Is History Repeating Its Self, The Final Chapter! The FDIC

By: Vance Remele
Sunday, July 13, 2008 7:03 AM

(CNN)-- IndyMac Bank, closed Friday by federal regulators, will reopen Monday with a new charter and a new name -- IndyMac Federal Bank.

Analysts fear thousands of IndyMac customers could lose as much as $500 million.

Analysts fear thousands of IndyMac customers could lose as much as $500 million.

 Customers who found locked doors and armed guards Friday afternoon could use ATM cards over the weekend to get to their money, but an estimated 5 percent of the $19 billion deposited in the bank was not insured by the Federal Deposit Insurance Corporation (FDIC).

Indymac's failure, which the FDIC chairman said could add up to be the most expensive U.S. bank failure ever, came as the FDIC's list of "problem" institutions is on the rise.

The FDIC disclosed last month that it was closely watching 90 financial institutions on its "problem list," up from 76 in the first quarter of 2008. The total assets of "problem" institutions rose from $22.2 billion to $26.3 billion, the FDIC said.

The number of troubled institutions monitored by the FDIC has grown in each of the last six quarters, starting in the fall of 2006 when there were just 47 on the list, the agency said. The last time it approached this level was in the fall of 2004 when the number was 95.

 America is flat broke now !

The next government Bail Out, The final chapter !

Is about to play out in the next few weeks our country will reveal the biggest bail out since the great depression, we are now just witnessing one of the steps above, Fannie Mae and Freddie Mac are down over 85% and is the next shoe to drop.

The U.S. Savings and Loan crisis of the 1980s and 1990s  Resolution Trust Corporation (RTC)  was the failure of several savings and loan associations in the United States.

The ultimate cost of the crisis is estimated to have totaled around USD $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government -- that is, the U.S. taxpayer looks familiar, with gas, food ant other commodities at sky high prices along with our government's deficit in my opinion is the final chapter of is "America Bankrupt Yet" that answer IS ? "YES" to be politically correct we call it a "Bail Out.

What Say You

 

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Comments

John Rainville
Member Since '06

John Rainville said:

Vance:

Unfortuanately, you are right on target in my mind.  When we have politicians that make stupid remarks that "We are not in a recession, you're just whiny people..." America, we have a problem.

What the elected officials and the the Fed are forgetting is that since the late 80's we have lost ground in wages. Lost our manufactruing base thanks to NAFTA, and that the economy and unemployment is MUCH worse than what is reported. We have people paying for gas, food, and utilties on credit cards---they have to be approaching their limits---then what?

We have many people who are no longer W-2 wage earners, but have been moved to contract work and 1099 positions. These people, like a real estate agent for example CANNOT go and collect unemployment. They are the "Working Unemployed" that are hurting and not shopping in ANY Goverment figures. They go to work for the week and don't collect a check.

How may more real estate agents would leave the business IF they could get unemployment and retraining like the loan officers can?  Don't get me wrong I LOVE The business and have been hard at it for over 22 years. There is no "real job" I would like to do, better.

I am not sure WHAT or IF the Fed's have any ability to solve this. My only thought is to approve a 100% FHA mortgage program WITHOUT the bogus charities, charge the same fee and use the "extra" money to fund the bailout.

IF we do not get the bottom of the pyramid shored up, and the starter home moving FAST, we are likely to crash and burn.

In the 80's when we went through this we had HIGH interest rates and tight credit, now we have LOW rates and tighter credit.  So we do not have the advantage of knowing that more people will buy when the rates "Come down".  We can't wait for the election---we need action now.  Call your Senator and Congressman and let them know we need them to get off the ether and make this a 24 hour a day priority.

I see the light at the end of the tunnel, but it is the trains headlight!

As always in my humble opinion.

July 14, 2008 10:21 AM
Vance Remele
Member Since '04

Vance Remele said:

John:Says

"My only thought is to approve a 100% FHA mortgage program WITHOUT the bogus charities, charge the same fee and use the "extra" money to fund the bailout."

That John is my biggest pet peeve The bogus charities ! but don't worry they are under the knife again and as in most laundromats they to will disappear cash in cash out for the Vigorish. or juice.. $495 push, its just another way to get some buyers upside down into  a home they can not afford in the long run.

I remember the 80s oh so well !!! it too was another creative system to hoodwink the commercial markets and the RTC gave it away at the cost of the taxpayers.

The only difference today is that is the residential market instead but a much bigger dilemma this go around, this will undoubtably be the greatest bailout in the history of the US.

I would call my  Senator John but he wont answer the phone, must be hiding Ya think, although he has a friend at his town home ...

http://www.youtube.com/watch?v=fGzrr3HlnyQ&feature=related

As for my Congressman , he is part of the 5% approval rate congress has today, so count him out... he's part of the problem to.

Its up to the Fed now our candy ass government have there tails between there legs and will do Nothing as usual, only after the elections will they come out and beat on those who lost and blame them for all of this, ( the blame game)

That light you are referring to at the end of the tunnel John , its getting closer since your posting here..

http://www.youtube.com/watch?v=npfbUxhKaWc

All Aboard!!

July 14, 2008 1:51 PM
Kathy Clulow
Member Since '07

Kathy Clulow said:

Vance: As a Canadian I watch what is happening in your market place as we more often than not feel the ripple effect from conditions south of the 49th. I am not thrilled to hear what you are saying here to say the least but the signs are all there.

John: I wonder just how much NAFTA really had to do with it. I believe it is our own greed that is at fault. We want more for less and therfore buy imports. We want more from less so invest and move our manufacturing out to other countries where pollution controls are non existent and costs are less.

When will we learn we can not have it both ways?

July 16, 2008 7:56 AM
Vance Remele
Member Since '04

Vance Remele said:

Hi  Kathy, said : I am not thrilled to hear what you are saying here !

I am not thrilled posting it either.

We  are witnessing the development of the all new

"Residential Home Trust" bail out unfolding before our eyes, throw in a few more US bank failures along the way in the up coming weeks as seen above and high inflation #s sooner or later the "R" word that every one has been avoiding to use will have to come out.

I will start by saying it "Recession"

I want to share with you a part my investment portfolio when I gas up! when someone tells its not about oil, it is about oil, that sucking sound you hear is our Dollar being sucked up to create this!!!

http://www.youtube.com/watch?v=0e-Oj7We3eM&feature=related

No recession there Huh and they have only 10% of the worlds Oil..

Election Year 2008

http://sendables.jibjab.com/

Press 2 for ARABLISH

July 16, 2008 11:50 AM
Vance Remele
Member Since '04

Vance Remele said:

Federal regulators close 2 more banks Story Highlights

FDIC takes over First Heritage Bank, 1st National Bank of Nevada

"Now somehow this does Not Suprise ME !"

http://tinyurl.com/6zrmna

Banks will reopen Monday as Mutual of Omaha Bank branches

Accountholders can access funds over the weekend by using checks, ATM cards

July 26 2008

CARSON CITY, Nevada (AP) -- The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators.

The banks, owned by Scottsdale, Arizona-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.

The FDIC said the takeover of the failed banks was the least costly resolution and all depositors -- including those with funds in excess of FDIC insurance limits -- will switch to Mutual of Omaha with "the full amount of their deposits."

The FDIC also said accountholders can access their funds during the weekend by writing checks or using ATM or debit cards.

As of June 30, the closed banks had total assets of $3.6 billion. That's down from $4.1 billion six months earlier. Most of the assets are in 1st National while First Heritage accounts for $254 million.

Calls to 1st National were referred by a receptionist to Joe Martony, an executive vice president in Scottsdale, Arizona. Martony didn't return repeated calls to his office.

In Nevada, 1st National has 10 branches and employs about 350 people. Five of its branches are in Las Vegas, three are in the Reno-Sparks area, one is in Carson City and one is in Laughlin. Notices of the closure were being posted late Friday.

Don't Miss

CNN/Money: Banks brace for more pain

CNN/Money: Most banks, FDIC are safe

Fifteen 1st National branches are in Arizona, while Newport Beach-based First Heritage has three branches in Southern California.

Bill Uffelman of the Nevada Bankers Association said Friday the FDIC action "is a reflection of the times for the banks. It's a poor economy."

Uffelman cautioned against the sort of consumer concern that prompted many customers of IndyMac Bank branches to wait for hours in line to withdraw funds across Southern California last week after that bank was seized by federal regulators. All FDIC-insured bank deposits are guaranteed by the FDIC up to $100,000, he noted.

Gov. Jim Gibbons said the bank takeover will be closely monitored in Nevada "to ensure there's minimal disruption to business and that employees' jobs are protected as much as possible."

Arizona Gov. Janet Napolitano spokeswoman Shilo Mitchell said in a statement that the FDIC's takeover of 1st National is not indicative of the overall banking climate in Arizona.

"It's very important that Arizonans know that their deposits are secure," said Felecia Rotellini, superintendent of Arizona Department of Financial Institutions. "They are well-managed and the 1st National Bank of Arizona issues should not cause any panic in Arizona."

July 26, 2008 6:50 AM
Gregory Bain
Member Since '07

Gregory Bain said:

Hey, Vance. Did you see this?

http://www.youtube.com/watch?v=hvv1oBF6Lgc

I'm sure that somehow it is Clinton's fault ;-)

July 26, 2008 8:52 AM
Vance Remele
Member Since '04

Vance Remele said:

OH Yea Gregory! You Ain't Seen nothing Yet.. Have a look at this Satire

http://www.youtube.com/watch?v=ThFvlybQYso&feature=related

What say you!!!

I am for the first time speechless ,,, ha ha  I  love Itt

July 26, 2008 12:31 PM
Gregory Bain
Member Since '03

Gregory Bain said:

LOL, Vance! Fox is always entertaining, if nothing else.

July 27, 2008 1:12 PM

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