Banks in Calif., Ill., Fla., Texas are shut down-

No, the Feds don't give a shit about these little banks because their failure doesn't bankrupt the Federal Reserve. If enough member banks of the Federal Reserve failed the Fed would cease to exist. What the Fed did was indirectly bail out themselves. These little fish are nothing worth worrying about. One less bank at the discount window.
 
I like how everyone ignores the fact that most of the banks the government lent money too have already paid it back with interest.
 
So why not lend the same money to these small community banks at 0% interest until they're able to get back on their own two feet? C'mon, let's level the playing field for once.
 
Quote from schizo:

http://finance.yahoo.com/news/Banks...tml?x=0&sec=topStories&pos=main&asset=&ccode=

What the fuck is going on? Are these banks TOO SMALL TO SURVIVE? The government gave the Wall Street institutions, those very same banks that brought the economy to her knees, unimaginable amounts of money that are only hoarded in the vaults, but they don't give a shit about these small fries. We want EQUAL TREATMENT!
More...

Most of those small banks if not all were heavy into the local construction loan business. Tons of lending for commercial development, residential construction. Construction loans are kept on book and when the builders went under that got hurt.

They were allowed to go under because their failure didn't extend much beyond the local communities.
 
Quote from jficquette:

Most of those small banks if not all were heavy into the local construction loan business. Tons of lending for commercial development, residential construction. Construction loans are kept on book and when the builders went under that got hurt.

They were allowed to go under because their failure didn't extend much beyond the local communities.
More...
You brought up a good point, which not coincidentally strikes at the heart of the current mess. Instead of doling out trillions of dollars to prop up the zombie banks, had Uncle Sam transferred the toxic asset from Wall Street to the community banks all across the nation at deep discount (like 10-cents on the dollar), the problem would have been cured overnight. It would then have become a localized problem that would be far easier to contain from spreading out of control. As the economy rebounds, the profit would be reinvested in the community and not the Wall Street.

Just what the hell were these idiotic economists thinking?
 
Quote from chrisjs87:

I like how everyone ignores the fact that most of the banks the government lent money too have already paid it back with interest.
More...
And you conveniently ignore:

- The trillion plus dollar Fed purchases of crappy loans

- The FDIC backing of these large banks that speculate

- The AIG bailout pass-thru of billions

- Special tax breaks

- An engineered stock market rally that allowed these big banks to issue new shares

- the backstopped and cheaply funded "merger" like BAC and MER and JPM and Bear

- FASB changes that allows banks to model their balance sheets according to a fantasy world.

Gee... I wonder if any or all of the above contributed to the paying off of the loans you mentioned and subsequent high bonuses. How convenient.
 
Quote from chrisjs87:

I like how everyone ignores the fact that most of the banks the government lent money too have already paid it back with interest.
More...

REALLY... stop being a sheeple! Goldman sacs ,citibank, aig, ms, even those 2 deadbeats lehman, bear stearns owe money. What are you reading about. the Lord blankefien pep talk! Oh i bet you really are working for GS publicity department!
 
Quote from chrisjs87:

I like how everyone ignores the fact that most of the banks the government lent money too have already paid it back with interest.
More...

I love the fact you have no idea what is going on

The Feds bailed out all of them. A bunch of AIG's money went to Goldman which declared record profits.

They all say they are making profits again with stinky balance sheets.

A-N-D they are still doing the same shit they were doing to cause the bailout in the first place.

The taxpayers may eventually get paid back 100%..but not yet, buster!

They need to break up BAC Citi, et al

Too big to fail, my sweet aunt!
 
You must log in or register to reply here.
Back
Top