$45 bil advance payment "wanted" by FDIC from banks for bank failures

[lonestarnot]

7 more down Friday and 416 more on the oopsie list.

http://news.yahoo.com/s/ap/20091024/ap_on_bi_ge/us_bank_failures

[slipslidingaway]

1. knr nt

[Extend a Hand]

2. There were seven failed Friday.

First DuPage Bank Westmont IL 35038 October 23, 2009 October 23, 2009
Riverview Community Bank Otsego MN 57525 October 23, 2009 October 23, 2009
Bank of Elmwood Racine WI 18321 October 23, 2009 October 23, 2009
Flagship National Bank Bradenton FL 35044 October 23, 2009 October 23, 2009
Hillcrest Bank Florida Naples FL 58336 October 23, 2009 October 23, 2009
American United Bank Lawrenceville GA 57794 October 23, 2009 October 23, 2009
Partners Bank Naples FL 57959 October 23, 2009 October 23, 2009

[lonestarnot]

3. Thanks. Fixed.

[dixiegrrrrl]

4. And tell me, are the banks lining up to give their money to the FDIC???

Betcha not.
Sounds like an admission FDIC needs .....a bailout.

[lonestarnot]

5. I know one fucking thing, they're not getting it off my back!

The revolution won't be televised.

[Statistical]

10. They will because if they don't the implied message is ...

that the FDIC will help consumers make an informed decision by publishing those banks which are "unable" to pay advanced FDIC payments.

Newspaper headline:
"<insert bank here> unable to pay minimum FDIC payment. Financial stability unknown!"

[naaman fletcher]

6. It's not really fair to the healthy banks..

Imagine you own a small bank. You decide to play it cool and not lend money to people who can't pay it back. For years you are in the shadows as the scum are loaning money left in right to people who can't pay it back, inflating their balance sheets, and living the high life.

Then, as you predicted would happen, the house of cards comes crumbling down.

OK, now is your time to shine. Out of the ashes you can expand and people will want to save at your bank because you did the right thing and they can count on you to be safe.

Then along comes the FDIC and says "Well hey we need to double, triple, or even quadruple the amount of money you pay us because we need it to bail out all the guys who were dumb with the bank's assets".

It's just one more example how the system is rigged to encourage reckless speculation.

[Nikki Stone1]

7. +1

:thumbsup:

[lonestarnot]

8. You just now figuring out we're fucked?

[dixiegrrrrl]

9. Actually, the fees to FDIC have not been paid for about 10 years

according to several stories I read. Part of the Bush era lax regs, don't ya know.
And the FDIC during that time was not trying to enforce the fees.
Just as they are now not enforcing the rules that say banks should be taken over at the first sign of
improper management/ bad debt ratios, etc.
So part of the reason the FDIC is burning thru money is that is actually buying up the the bad debt that it allowed the banks to accrue in the first place.