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Ear to the Ground

Bad Loans and the Bankers Who Love Them

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Posted on Aug 26, 2008

The FDIC’s list of “problem” banks grew by 30 percent in the last quarter, with more on the way. The net income of FDIC-insured lenders, meanwhile, has plummeted 87 percent. IndyMac, one of nine banks to kick the bucket in 2008, cost the FDIC $8.9 billion.


Bloomberg:

The U.S. Federal Deposit Insurance Corp. said its “problem list’’ of banks increased 30 percent in the second quarter to the highest total in five years as more commercial real-estate loans were overdue.

The list had 117 banks as of June 30, up from 90 in the first quarter and the highest since mid-2003, the agency said today in its quarterly report without naming any institutions. FDIC-insured lenders reported net income of $4.96 billion, down 87 percent from $36.8 billion in the same quarter a year ago.

“More banks will come on the list as credit problems worsen,’’ FDIC Chairman Sheila Bair said at a news conference in Washington.

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By yellowbird2525, August 27, 2008 at 10:30 am #

This was a set up to get rid of many many citizens; by the claim “just walking away” from there homes; the dictatorship is checking it’s list off as it continues down it’s premeditated cold blooded agenda: watching the Talaban sell their opium & reoutfit themselves with both men & guns & doing nothing at all to delay or stop them: they now send many Americans there to be killed; killing off even more of them; the ID fed #s are ready to be FORCED on citizens; they are going to grab everyones money that they can take; claiming the citizens are the “wicked” which they have set up: americans won’t do the work; they have never done anything for anyone; (since Grandpa’s day down to grandkids day the citizens have paid for aid so many times to so many countries there should not even BE any 3rd world countries; nor any countries without decent water, sewers & electricity; unless of course, they KEPT the $ for themselves like they kept the Indians oil $; see http://www.democracynow.org; and of course the “aid” they give to countries they keep 2/3’s for themselves; as well as having laundered $ coming in by the billions from the Corps by “overpaying” them; then having books written, claiming “speechs” made; anything to launder the $; having put much in off shore accounts; graft & corruption thousands of times worse than Hussain; said the Iraqi’s; wishing he were alive again; they KNEW dictatorship: wish Americans would WAKE UP to the fact it is NOT a democracy nor even a “free” country except politicians are free to do whatever they choose without consequenses; LAWS were ALL in place after the depression folks; but then again: every other country & nation KNOWS what is going on except Americans; THAT is why they are talking Hitler & how it was done then; how it is being done NOW in the USA; & talking genocide; but hey, the great American way is lies, deceit, deception, misdirection, claiming to be the “good” guys.

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By G.Anderson, August 27, 2008 at 1:17 am #

In the last few days, Mitsubishi acquired Union bank.

I suspect this will be the pattern in the future, as those with vast sums of American money are no longer satisfied with just buying our debt, but begin to send our revenue streams overseas too.

Once the profits of American companies go over seas, will the Aristocracy finally do something about our jobs going overseas?

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By msgmi, August 26, 2008 at 11:35 pm #
(Unregistered commenter)

The financial sector crisis is a hiccup and ‘goldie locks’ (U.S. economy) is resilient and rebounding according to Larry Kudlow, the cable TV economic guru and champion of government deregulation. While all regulatory oversight from the Beltway to the Security Exchange Commission were taking a nap, the foxes profited and crippled the financial sector.

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