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I was recently called out on missing the details of the FDIC’s list of 117 ‘problem’ banks. In a post on the OTS’ agreement for regulatory supervision of Washington Mutual, I incorrectly stated that NCC was on that list and inferred that WaMu was as well. This is not the case. The [...]

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You have probably heard by now that Washington Mutual ousted its embattled CEO Kerry Kilinger and replaced him with former Sovereign Bancorp CFO Alan Fishman. But, what you have not heard is that WaMu has signed an agreement with the Office of Thrift Supervision (OTS) which requires WaMu to provide business plans and forecasts [...]

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I fully anticipate this will happen, so the question becomes: what will the Fed do?
The FDIC stepped in at two banks over the weekend, 1st National Bank of Nevada and First Heritage Bank. These banks failed as a result of construction loans in real estate bust regions of the US. No, surprise there. [...]

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Recently, the SEC restricted short selling on a list of 19 stocks because of turmoil following the Fannie-Freddie worries last week. In effect, the SEC was signaling that these institutions are too big to fail because a number of these companies were not subject to rumors of massive losses while a number of institutions not [...]

Given the fact that the FDIC lost a massive $10.7 billion on the IndyMac transaction, I am re-posting this blurb from July.

I said then, I still believe, the FDIC needs a lot more money or it will be bust. Sheila Bair has already requested $500 billion. See the WSJ article “Bill Seeks to Let FDIC Borrow up to $500 Billion.”