Federal Deposit Insurance Corporation

Has The Housing Bubble Burst Completely?

by Peter Giardini | November 4, 2009

The funny thing about bubbles is that sooner or later they burst. Once again I get to be the master of understatement. What fun! After having survived these past 2+ years as each of us has watched the housing bubble burst in most parts of the country and deflate everywhere else, we are being told [...]

3 comments Read the full article →

Commentary

Our World Has Rolled Over

by Tom Koziol | September 11, 2009

I realize I am not the only guy on this planet who reads the “news” as presented both in the newspapers and on the Internet. Even if I didn’t read the news, I’d get a good dose of what people are calling reality. That dose comes from the mix of clients our insurance agency serves. Lucky me…

Here are two sentences taken from two separate news stories:

“The coffers of the Federal Deposit Insurance Corp. have been so depleted by the epidemic of collapsing financial institutions that analysts warn it could sink into the red by the end of this year.” – AP
“Pending U.S. home sales rose more than expected in July to the highest level in more than two years as first-time buyers rushed to take advantage of a tax credit that expires this fall.” – AP

Is it me or are these two sentences sending conflicting messages. If it is me, I apologize upfront. However, I don’t think it is me.

Failure Ahead

According to published reports, so far this year, 81 banks have failed. Last year only 25 went down the toilet while in 2007, if you’re counting, only three went south. These same sources project hundreds of more banks are expected to fall. The primary reason given is due to souring loans for commercial real estate.

1 comment Read the full article →

Real Estate

CIT Group Down The Wire

by Joshua Dorkin | July 20, 2009

The following is a guest post by Hiland Doolittle:

In December, CIT Group received a $2.33 billion lifeline from the Troubled Asset Relief Program. CIT Group is one of the country’s largest lenders specializing in loans to small and mid-sized businesses. The struggling giant has applied to the Federal Deposit Insurance Corp for assistance under a program that guarantees newly issued debt.

The FDIC is reluctant to intervene. In strained meetings with the FDIC, The Treasury and The Federal Reserve, CIT’s financial instability has come under fire and poses a serious roadblock for a proposed bailout.

2 comments Read the full article →

Commentary

TARP, PIPP, TALF, FRB, FDIC, EESA – An Expensive Alphabet

by Tom Koziol | May 1, 2009

I would suppose every American has heard about the $700-billion financial bailout Washington shoved down our throats. In fact, I believe some people still find it a tough pill to swallow. I know I do. What I also believe is most Americans don’t know about the in-bred agencies, and their fallout, created as a result [...]

0 comments Read the full article →