Posts under ‘Bank Failure’

The FDIC 2nd Quarter Banking Profile is out. Problem banks increased by 54 to 829 involving 403 billion in assets, a decrease of 28 billion from the first quarter.

The result will be that markets don’t recover which means the economy wont recover as we pursue an extend and pretend strategy just like the Japanese.

A detailed look of the banks deliberate promotion of the sub-prime lending fraud and other credit bubble blowing strategies that ultimately precipitated the housing crash and financial crisis we have today.

The NBER, the folks officially in charge of dating when recessions begin and end, never officially declared that the recession was in fact over.

A report that figures the large national banks are facing losses of between 55.3 billion in a best case scenario, up to 179.2 billion in a worst case situation.

Costs to the FDIC Deposit Insurance Fund have hit 18.93 billion this year. Well above the 15.33 billion the FDIC had allocated for closures during all of 2010, and that’s including the pre-paid assessments.

While prices are still increasing this component shows the undue influence of commodities price fluctuation of late and indicates that deflation is much more of a concern than inflation.

That said the June Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions showed prices falling in most categories, following a drop in buyer traffic. Occupancy ready foreclosures fell 6.8%, short-sales 6.3% and regular sales 4.6%.

The ECRI Weekly Leading Index continues to slip as the smoothed annualized growth rate dropped to a recessionary –10.5% despite no change in index itself.

As opposed to the mark to market model that would most likely precipitate wholesale capital calls and wide spread financial institution failure.