Three banks 'critically undercapitalized'

Well we can always bail them out too. Why not add that to the deficit.

Red wrote:

Well we can always bail them out too. Why not add that to the deficit.

George Bush already did to the tune of 700 million dollars

Mitch Cumstein wrote:

I can't wait for the same socialists who complained about Bill Cooper's salary and how much profit TCF Bank makes start complaining about how bank managers in this case are greedy, lazy, stupid, etc.

i wouldnt say they are lazy or stupid, but show me a banker who isnt greedy

Reading this is like saying a car pulled into a C-store, a gun got out and robbed the store. No mention of who drove the car or had the gun. Or who owned the store.
PP reports "banks ", even the River Bank Bank...but no names of humans who own these banks, no mention of bank officers and managers, no mention of people who owned money and trusted the banks.
Banks don't lose money, people do...and what their names ?

The Federal Government can do everything!

Don't worry. They can do everything and fix everything.

You don't even have to think anymore.....just chant....."hope".... "change"

hey! how's that 'spensive stimulus plan working out for ya?

these are small businesses, some are well run, some aren't. the stupid ones will go out of business. they took a risk and the real estate market crashed. the regulators have every bank now handcuffed so the "take out" for bad loans does not exist. more banks will fail.

What about all the people and businesses who got the bad loans?

They got to spend the money and not pay it back!

Try FDIC -

Dems to push through banking overhaul quickly


http://news.yahoo.com/s/ap/20090618/ap_on_bi_...

WASHINGTON – Democratic leaders have committed to enacting by the end of the year the biggest regulatory revision to the U.S. financial system since the 1930s — an undertaking so ambitious it has some lawmakers worried about missteps.

"We have to evaluate it, weigh it, slow it down and make sure we do it right," said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee. "Because if we don't, we will pay dearly."

Treasury Secretary Timothy Geithner was expected to outline the administration's plan on Thursday before the Senate panel and the House Financial Services Committee.

Read more at news.yahoo.com ...

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Congress' Financial Mess

http://www.gmu.edu/departments/economics/wew/...

the money line:

News media people, often plagued with little understanding, fail miserably in their duty to inform the public. This is particularly evident in their reporting on the current financial meltdown, suggesting it was caused by deregulation and free markets. Professor David Henderson, research fellow at Stanford's Hoover Institution, writes about regulation in "Are We Ailing From Too Much Deregulation?" in Cato Policy Report (November/December 2008).

The Federal Register, which lists new regulations, annually averaged 72,844 pages between 1977 and 1980. During the Reagan years, the average fell to 54,335. During the Bush I years, they rose to 59,527, to 71,590 during the Clinton years and rose to a record of 75,526 during the Bush II years. Employees in government regulatory agencies grew from 146,139 in 1980 to 238,351 in 2007, a 63 percent increase. In the banking and finance industries, regulatory spending between 1980 and 2007 almost tripled, rising from $725 million to $2.07 billion.

So here's my question: What are we to make of congressmen, talking heads and news media people who tell us the financial meltdown is a result of deregulation and free markets? Are they ignorant, stupid or venal?

Walter, they are all of the above.

Subprime lobbyists in $370m battle

http://www.ft.com/cms/s/0/ab5cf9aa-39b7-11de-...

The top 25 US originators of subprime mortgages – the risky assets that sparked the global financial crisis – spent almost $370m in Washington over the past decade on lobbying and campaign donations as they tried to ward off tighter regulation of their industry, an investigation has shown...

Most of the top 25 originators, most of which are now bankrupt, were either owned or heavily financed by the nation’s largest banks, including Citigroup, Goldman Sachs, Wells Fargo, JPMorgan and Bank of America. Together, they originated $1,000BN in subprime mortgages in 2005-07 – almost three-quarters of the total...

The banks, which have received the vast bulk of the $700bn in troubled asset relief funds issued since last October, also supported the lobbying effort to prevent tighter regulation of the subprime market.

Nine of the top 10 lenders were in California, one of the states badly affected by the housing crisis that emerged after a surge in lending to riskier, or subprime, borrowers, many of whom were forced to foreclose.

At least eight of the top 10 were backed at least in part by banks that have received bank bail-out money...

Read more at ft.com ...

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$370,000,000 / 10 years =$37,000,000 =$69,159/member/year ...nice work if you can get it.

can't imagine why people are throwing 'tea parties'...wake me up when the shooting starts.

Red wrote:

Well we can always bail them out too. Why not add that to the deficit.

Why do you think the United States has bankruptcy laws?

There is no need for any bailout, shot gun mergers, stealing tax payer money. All that is required is placing the banking system through bankruptcy reorganization. Clean out all the derivatives obligations.

That's what a sane population would demand.

Mr Bill wrote:

<quoted text>
Why do you think the United States has bankruptcy laws?
There is no need for any bailout, shot gun mergers, stealing tax payer money. All that is required is placing the banking system through bankruptcy reorganization. Clean out all the derivatives obligations.
That's what a sane population would demand.

I was being sarcastic.

oxboro wrote:

<quoted text>
George Bush already did to the tune of 700 million dollars

And WHO opposed the bailout? Not Democrats. Also, Obama greatly expanded it.

<< So here's my question: What are we to make of congressmen, talking heads and news media people who tell us the financial meltdown is a result of deregulation and free markets? Are they ignorant, stupid or venal? Walter, they are all of the above. >>

You got that right.

Cybear wrote:

<< So here's my question: What are we to make of congressmen, talking heads and news media people who tell us the financial meltdown is a result of deregulation and free markets? Are they ignorant, stupid or venal? Walter, they are all of the above. >>
You got that right.

That's true. Over the past two decades or so every banking regulation enacted by FDR after the depression was overturned.

Just think, everything done by Wall Street, and city of London financial houses would be illegal if those FDR regulations were still in effect.

It kind of gives you a clue why these FDR era laws had to be repealed. And right on que we have another depression / financial collapse just as we got from Wall Street in the 1920's.

Red wrote:

<quoted text>
I was being sarcastic.

I'm not. Put the banking system into bankruptcy. Clean up all those derivatives and enact regulation.

Go back to a credit system that our nation was founded and get rid of this bankrupt British monetary system.

But there is no need to bail out this bankrupt banking system. Use the power of Government to give this corpse a proper funeral.

Mr Bill wrote:

<quoted text>
I'm not. Put the banking system into bankruptcy. Clean up all those derivatives and enact regulation.
Go back to a credit system that our nation was founded and get rid of this bankrupt British monetary system.
But there is no need to bail out this bankrupt banking system. Use the power of Government to give this corpse a proper funeral.

I'm fine with that. Same for Detroit etc. Look at the airlines. We kept bailing them out and it delayed the inevitible. Once we shut the door they had to figure out how to do business differntly. The ones who didn't went away. It's how it should work.

Mitch Cumstein wrote:

I can't wait for the same socialists who complained about Bill Cooper's salary and how much profit TCF Bank makes start complaining about how bank managers in this case are greedy, lazy, stupid, etc.

Well, you have to hand it to TCF. They are a Sioux Falls South Dakota company and they have managed to convince Twin Citians they are here! Now, that's good marketing!

Red wrote:

<quoted text>
I'm fine with that. Same for Detroit etc. Look at the airlines. We kept bailing them out and it delayed the inevitible. Once we shut the door they had to figure out how to do business differntly. The ones who didn't went away. It's how it should work.

The bailout of the auto sector was also a bail out of the financial speculators. The clunkers program is also a bailout for financial speculators.

You want to know what real value the auto industry has, and its not being protected?

They have the largest concentration of "machine tool" capability in the United States. All that productive capacity could be re directed at anytime and Detroit could be producing "locks and dams", "NASA" projects, maglev trains, nuclear powerplants. You name it they could produce it. They could lead the way in reversing this break down crisis.

Now why lose this capability? The United States has lost it's way. Someone in the White House should go back and study FDR.

Was at the grocery store yesterday and a bank employee was meeting customers as they came into/out the door trying to generate new customers. Yea, like I'm going to leave my bank of 30+ years. I believe they were giving away free gas or something like that. I've never been approached like that before by a bank. We get plenty of calls/mail offering loans (which we decline), but never in person like that. We weren't real intrigued by the Cash for Clunkers program because we simply don't need a car. Also, the $4,500 doesn't seem like much when put toward an extremely over-priced vehicle. We've done enough bailouts, it's time to let some of these banks go away.