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View Diary: Naked Capitalism: "...Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives" (109 comments)

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  •  Cypriots are supposedly insured, too, (3+ / 0-)

    under the EU constitution.

    Bank of America, N.A. is ranked second in the U.S. in terms of total deposits, shrike.  At the end of 2012, that figure was $1.2 trillion dollars.  Do you honestly think FDIC can cover that?

    •  Last I checked the FDIC had $50 million or so. (3+ / 0-)

      But that is irrelevant.  Bank of America has its capital ratio monitored daily, has passed numerous stress tests, and has a large cash position on reserve at the Fed.

      Yves has been wrong on Bank of America for years.  She talks about their HELOC exposure as fatal since 2009.

      Buffett put $5 billion in BAC and he can read a balance sheet like no other.

      In fact it is sad to mention Buffett here with a rank amateur like Yves Smith.

      "The way to see by faith is to shut the eye of reason." - Thomas Paine

      by shrike on Wed Mar 20, 2013 at 06:02:00 PM PDT

      [ Parent ]

      •  how do you know Buffet hasn't hedged? (2+ / 0-)
        Recommended by:
        lostinamerica, basquebob
        $5 billion in BAC
        do you know for a fact that he did not ?

        The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

        by ozsea1 on Wed Mar 20, 2013 at 07:23:59 PM PDT

        [ Parent ]

      •  You know who else passed the stress tests (3+ / 0-)
        Recommended by:
        Azazello, RageKage, dharmafarmer

        with "flying colors" a year or so ago? The two largest Cypriot banks, the very same two that Schäuble said yesterday are bankrupt. You know why the bank stocks remain so depressed here and elsewhere compared to their pre-2009 valuations? Because no one, in the markets or elsewhere, believes for a second the data that is being shown in public is accurate, except a small cadre of true-believers.

        Perhaps you meant $50 billion which for the $10.34 trillion (as of 2012) in insured deposits in the U.S. is grossly inadequate and many experts think so. The reserves should be $139.6 billion according to FDIC rules and $200.64 billion according to the 2012 target based on $10.34 trillion total insured deposits. In 2010, 157 banks with approximately $92 billion in total assets failed. (source SNL Financial).

        I don't know where you got the $50 million figure from, but as you can see $50 billion, with a b, is not even close to what is needed. By 1995 the S&L losses where estimated to be $97 billion. (U.S. General Accounting Office estimated cost of the crisis to around USD $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government from 1986 to 1996.[1] That figure does not include thrift insurance funds used before 1986 or after 1996. It also does not include state run thrift insurance funds or state bailouts. sources http://en.wikipedia.org/... ) So I don't know how you can draw so much comfort from $50 million or $50 billion, and $50 billion is a thousand times more than $50 million, something that sadly and surprisingly is not so apparent to a majority of the citizenry.

        Keep trusting what they tell you about the capital ratios of BoA or any of the TBTF at your own peril. Particularly on the week after in a Senate hearing became abundantly clear that Jamie Dimon, "the best bank CEO in the world", lied to the markets and the regulators. Some are blind because they choose to be blind.

        "The great enemy of the truth is very often not the lie -- deliberate, contrived and dishonest, but the myth, persistent, persuasive, and unrealistic. Belief in myths allows the comfort of opinion without the discomfort of thought." -John F. Kennedy

        by basquebob on Wed Mar 20, 2013 at 08:39:29 PM PDT

        [ Parent ]

        •  I last looked at the FDIC balance in 2009 (2+ / 0-)
          Recommended by:
          virginislandsguy, johnny wurster
          The Deposit Insurance Fund (DIF) balance decreased by $18.6 billion (180%) to negative $8.2 billion during the third quarter, the FDIC said in its Third Quarter 2009 CFO Report to the Board. The decrease was primarily due to a $21.7 billion increase in the provision for insurance losses, which was partially offset by a $3 billion increase in assessment revenue.
          When it was close to negative.

          http://www.journalofaccountancy.com/...

          Since then the big banks have beefed up their capital by trillions.

          I won't bother with a link for that...

          I am always right.

          "The way to see by faith is to shut the eye of reason." - Thomas Paine

          by shrike on Wed Mar 20, 2013 at 09:00:04 PM PDT

          [ Parent ]

          •  Have you ever read this quote? (1+ / 0-)
            Recommended by:
            RageKage
            "The way to see by faith is to shut the eye of reason." - Thomas Paine
            So the $50 million figure was based on faith, thin air, or I guess in 2009 going from $10.4 billion to -$8.2 billion you have to pass by $50 million. I see the rigor of your arguments.

            Faith by definition is infalible, but that is best left to other realms.

            "The great enemy of the truth is very often not the lie -- deliberate, contrived and dishonest, but the myth, persistent, persuasive, and unrealistic. Belief in myths allows the comfort of opinion without the discomfort of thought." -John F. Kennedy

            by basquebob on Wed Mar 20, 2013 at 09:17:28 PM PDT

            [ Parent ]

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