patrick.net

And it gets better:

OneWest Bank, FSB, Pasadena, California, Assumes All of the Deposits of La Jolla Bank, FSB, La Jolla, California

http://www.fdic.gov/news/news/press/2010/pr10034.html

I'm thinking some of this is old news to some of you but I'm a little slow. OK, I work FT and have two toddlers if I'm allowed any excuses for not keeping up with this depressing crap!

FDIC policy could harm economy

"Through 2009, the FDIC made 94 loss-sharing deals covering $122 billion in assets."

http://www.bizjournals.com/southflorida/stories/2010/02/15/story1.html?b=1266210000^2869821&s=industry&i=commercial_real_estate

One of my in-laws just sent me this link to a video discussing Indymac by Think Big Work Small. It explains this deal for commoners like myself.

http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1110273

If anyone is interested, I have written many articles about the FDIC and its corrupt actions. Here is a link to one:
http://seekingalpha.com/instablog/387205-ppy/55404-la-times-fdic-onewest-sweetheart-deal-after-all?source=new_post
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"No-risk insurance" told to NY Times by our FDIC chairwoman on deals similar to this:
"Lennar... has purchased a 40% interest in the loan portfolios, while the FDIC is keeping the remaining 60% equity interest. The FDIC provided $627 million of financing at no interest for seven years.
With FDIC kicking in about $365 million in equity, Wall Street analysts pegged the portfolios' overall purchase price at $1.22 billion, or 40 cents on the dollar"
www.marketwatch.com/story/lennar-scoops-up-distressed-loans-from-fdic-2010-02-11
" 'We project no losses,' Sheila Bair, the chairwoman, told me in an interview. Zero? Really? 'Our accountants have signed off on no net losses,' she said. (Well, that’s one way to stay under the borrowing cap.)
By this logic, though, the F.D.I.C. appears to have determined it can lend an unlimited amount of money to anyone so long as it believes, at least at the moment, that it won’t lose any money."
www.nytimes.com/2009/04/07/business/07sorkin.html
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By the way, the FDIC ended Q3 2009 with -$8 billion in balance. Its DIF ratio has fallen below the Congressional mandatory minimum since June 2008.
http://online.wsj.com/article/BT-CO-20091124-710549.html
Yet it is backing over $300 billion of bonds via TLGP for banks like Goldman Sachs and GAMC.
"The Subsidy That Won't Die
The big banks claim the government isn't helping them anymore. Not exactly. Check out this little-known subsidy."
http://www.newsweek.com/id/230530
Wall Street paid out about $145 billion in total compensation in 2009.
http://online.wsj.com/article/SB10001424052748704281204575003351773983136.html?mod=djemalertNEWS

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Aren't those unlimited implicit tax dollar guarantees lovely?
*imho*

ppy, are you "seeking alpha"!?!?! I tried to click your links while doing google searches a few months ago. I was looking for info re: Wells Fargo buying up Wachovia and converting all the toxic loans into 10 year interest only loans but the links didn't work. I just figured you were targeted by the FDIC and they shut you down!

Thank you for the links. I look forward (as much as one can in regards to more bad news) to reading them.

Hi Leigh,

I have been posting on SP for a while. I became very interested in the actions by our financial regulators, especially the FDIC, after Wamu was seized (I own Wamu shares). The more I read about Ms. Bair and her agency, the more shocked I became at their under-reported unfair decisions and actions.

If you ever get a chance to read my blogs, you may notice that many articles contain repetitive stuff. The reason for that is I figure anyone who happens to read one of my articles by chance won't go through all my posts and I want to present to them all the information I tried to gather.

As you can see, many popular sites including Zero Hedge and Market Ticker have been trying to warn about the FDIC for months. I am glad Mr. Hertzog finally cracked open this almost unbelievable mainstream media positive coverage on the FDIC and woke people up.

For an agency that is essentially the final defense for average consumers like me what it has been doing is blatantly reckless, as far as I am concerned.

It is important to note that the FDIC is not just an insurer but also a federal regulator for Class NM and SB banks. Its DIF ratio has fallen below Congressional mandatory minimum since June 2008 and its Office of Inspector General has released several reports criticizing its poor supervisory effort.
http://www.calculatedriskblog.com/2010/02/unofficial-problem-bank-list-increases_20.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=aFb4U0YZ49PQ&pos=7

Now with that information, if you can go through my blogs, you will notice how this agency has been using "depositor/taxpayer protection" to expand its power and rectify its mistakes at the expense of the general public. You will also realize when Ms. Bair spoke against Wall Street bonuses or advocated keeping people in their homes her actions have done little but ended up backing the opposites.

*imho*