FDIC Report: 117 Financial Institutions In Trouble, One Big Problem, I Do Not Believe It
August 27, 2008 12:54 AM
Today the FDIC came out with their report of possible troubled financial institution list. it counted 117 as possibly troubled, up from 90 the previous quarter.one small problem, I believe this nonsense like not at all. The only reason that there were not far more on the list as banks refuse to realize the true value of the loans they hold. This was witnessed recently by I believe Merrill when they sold loans at $7 billion when they they had them on the the books just weeks before at $37 billion.
Today;s number of banks in trouble was comical, at best. It has to be far worse than indicated and people that believe otherwise are wrong. I have said this for over a year, and have been proven correct each and every time, and am right again. This is nonsense. The banks should be required to write down the value of the loans to CURRENT values NOW and move on. They refuse to do so. The list is FAR bigger than 117 and there needs to be something done about the financial institutions that continue to “hide” bad debts on their balance sheet. And I mean something punititive. Then again, this was supposed to be illegal, as Cramer has alluded to many times.
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Why did 117, probably more, institutions all of the suddenly report they were in serious trouble, all at the same time. The CEO’s have been raking in profits of a disproportionate amount for the past 8 years.
the government, if they assume the loans, should reduce the interest, send loan holders new contracts and work to stablize the individuals who hold the loans and use the interest to payoff the bailout. NO profits should be provided to the lenders!!! They get their company assumed, they walk away with their own personal lossses.
Elaine