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BankUnited Collapses
The Wall Street Journal is reporting that BankUnited in Florida has finally been taken into receivership. No surprise there, but the price tag might be: apparently the FDIC estimates the takeover will ultimately cost taxpayers a cool $4.9 billion — and that's for a bank with less than $15 billion in assets. I don't think even IndyMac was quite that bad.
The solution
tagged as:- solution
Sell Florida via ebay. They cause far too much trouble down there.
Maybe the Castro brothers would like it. I`m sure we can work something out.
"...Poor traceability enables plausible deniability...." - Valdis Krebs
OUCH!
As of Dec. 31, 2008, the FDIC had about $18.9 B set aside to take over failed banks. Since then, they have taken over more than 32, which is more than the combined total of the previous 2 years. They are looking at about 250 that are on the edge. They should be just about out of funds right about now. Granted, the Fed has set up a reserve of $100B to tide them over, but all of that is non-budgeted money that will have to be borrowed.
Meanwhile, long term Treasury sales the past couple months have seen a decline in buyers. Let the Fed start printing even more money & fewer outside investors will want to buy Treasuries. I think we may be at the beginning of watching the magic money tree die.
So what happens next? I don't think I want to know.
Whoa....settle down there. I
Whoa....settle down there. I agree to shutting down South Florida -- say below Gainesville -- but we folks up here in Tallahassee voted 2-1 for Obama.
Ironic motto
Obviously, it's not just a local thing.
What happens next?
I heard S&P lowered their rating for the UK government. Wow.
But I thought Florida was going to be underwater after global warming, not this soon.
Tripp
It is so AWESOME that
It is so AWESOME that ratings for WESTERN NATIONS are going down but those of OVER-LEVERAGED FINANCIAL INSTITUTIONS DID NOT.
Isn't it? ISN'T IT?!
Indymac cost
Actually IndyMac was much worse, about $9 billion. See here .
yeah, AWESOME!
MNPundit,
I suppose it is kinda refreshing to have it publicly displayed that the governments serve the rich and not the other way around. I mean, since there is nothing we can do about it at least they can be honest about it. And Obama did promise transparancy and openness, so we do get that.
Tripp
The FDIC couldn't wait another day
This may seem meaningless, but it isn't. The FDIC almost always closes banks late on Friday afternoons, to avoid inconveniencing customers. Moving in on a Thursday suggests that the situation here was very, very bad and that Sheila Bair & Co. decided they couldn't wait another 24 hours to act. I believe that has happened one other time in the past year (either WaMu or IndyMac - can't remember which one).
The UK is not going bankrupt
So the chicken little shrieking can hold off, it will have to pay more on its sovereign debt, theoretically at least.
Rather more useful than idiotic "Oh the Rich Rule" (as if a major financial depression a la the 1930s is pro-poor...), is to note the concentration of the bank failures under your Office of Thrift Supervision: this was yet again a bank under that regulator. There you can find something useful to howl on about. Contra to the impression, most of these banks are not under your central bank, but under some other balkanised entities of 2nd or 3rd rate supervision.
Drum and you all should be up in arms about this, rather than making technically ignorant comments about credit.
Are the banks investment books public records?
I'm curious to see what debt Bank United is holding. Miami had a burst of foreign investment in 2nd homes (to the extent that 11 high rise condo projects were started) over the last 5-10 years. These condos have been sitting unfinished since the economy started faltering and I'm curious to see how much of this debt is speculative debt held by foreign nationals (please excuse my ignorance on the details of international banking and real estate, it will be a couple decades before I can participate in the market so I have been concerning myself with other things).
The rich DO rule
Lounsbury,
The rich do rule, they just don't do it very well.
And I'm not picking on the UK. The UK does very well for being a smallish economy, at least compared to the US. I see it as the plucky comic sidekick to the US. When we bully other countries the UK is the one slightly behind us saying "Yeah, that's right, what he said."
Just don't be getting uppity and forget your place, Limey. If it wasn't for the US military protection you'd have no hope in MENA. Granted as it is you have no hope, and that is making you cranky, but still . . .
Tripp
Cranky?
Mate, what makes me cranky is stupid comments.
As for the Rich and ruling, no one rules well. Not rich, not poor. That is the human condition.
The human condition -
Yeah, you got that right. The stupidity of humanity, bah!
I do appreciate the fact that you are amusing whilst you complain.
You seem to be able to ignore bait, too. That is admirable.
Tripp
The Mayor of Phoenix was
The Mayor of Phoenix was very worried about a plague of pigeons. He could not remove the pigeons from the city. All of Phoenix was full of pigeon poop, the people of Phoenix could not walk on the sidewalks or drive on the roads. It was costing a fortune to keep the streets and sidewalks clean.
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