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***FDIC QUARTERLY REPORT 10AM TODAY***

 
ActiveIngredient

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08/27/2009 10:10 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Board will discuss an additional special assessment on insured banks at end of 3rd quarter.
ActiveIngredient

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08/27/2009 10:10 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Ongoing discussions with Treasury about how TARP can be more effective for small institutions.
ActiveIngredient

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08/27/2009 10:12 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Press release is up now:

FDIC-Insured Institutions Lost $3.7 Billion in the Second Quarter of 2009
[link to www.fdic.gov]
Anonymous Coward
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08/27/2009 10:13 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Doesn't sound too DOOMY yet, but thanks for keeping us posted...
snarkModerator
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08/27/2009 10:14 AM

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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Press release is up now:

FDIC-Insured Institutions Lost $3.7 Billion in the Second Quarter of 2009
[link to www.fdic.gov]
 Quoting: ActiveIngredient

Damn that is one ugly year-over-year comparison from last year. "An aggregate net loss of $3.7 billion in the second quarter of 2009, a decline of $8.5 billion from the $4.8 billion in profits the industry reported in the second quarter of 2008."

Last Edited by snark on 08/27/2009 10:15 AM
T For Texas, T For Tennessee!


The virtue of courage is a prerequisite for the practice of all other virtues, because otherwise one is virtuous only when virtue has no cost. There are times when something needs to be done, and yet we know that if we step up and do this needful thing, we will pay a heavy personal price. -C.S. Lewis
Anonymous Coward
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08/27/2009 10:17 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Press release is up now:

FDIC-Insured Institutions Lost $3.7 Billion in the Second Quarter of 2009
[link to www.fdic.gov]
 Quoting: ActiveIngredient



FDIC-Insured Institutions Lost $3.7 Billion in the Second Quarter of 2009
Total Reserves of the Deposit Insurance Fund Stood at $42 Billion
FOR IMMEDIATE RELEASE
August 27, 2009 Media Contact:
Andrew Gray (202) 898-7192
[email protected]

[link to www.fdic.gov]

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported an aggregate net loss of $3.7 billion in the second quarter of 2009, a decline of $8.5 billion from the $4.8 billion in profits the industry reported in the second quarter of 2008. Insured institutions earned $424 million in net operating income during this latest quarter even after a special assessment of $5.5 billion to bolster the FDIC's insurance fund. However, one-time losses and other items totaling $4.1 billion pulled the industry results into negative territory.

"While challenges remain, evidence is building that the U.S. economy is starting to grow again," said FDIC Chairman Sheila Bair. "Banking industry performance is -- as always -- a lagging indicator. The banking industry, too, can look forward to better times ahead. But, for now, the difficult and necessary process of recognizing loan losses and cleaning up balance sheets continues to be reflected in the industry's bottom line."

Chairman Bair went on to say, "The FDIC was created specifically for times such as these. No matter how challenging the environment, the FDIC has ample resources to continue protecting depositors as we have for the last 75 years. No insured depositor has ever lost a penny of insured deposits...and no one ever will."

Provisions for loan losses totaled $66.9 billion in the quarter, an increase of $16.5 billion (32.8 percent) over the second quarter of 2008. Extraordinary losses stemming from writedowns of asset-backed commercial paper totaled $3.6 billion, compared to extraordinary losses of $366 million a year earlier. Noninterest expenses were $1.7 billion (1.7 percent) higher, primarily due to increased FDIC deposit insurance premiums.

Indicators of asset quality continued to worsen during the second quarter. Both the quarterly net charge-off rate and the percentage of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status) reached the highest levels registered in the 26 years that insured institutions have reported these data. Insured institutions charged off $48.9 billion in uncollectible loans during the quarter, up from $26.4 billion a year earlier, and noncurrent loans and leases increased by $40.4 billion during the second quarter. At the end of June, noncurrent loans and leases totaled $332 billion, or 4.35 percent of the industry's total loans and leases.

"Deteriorating loan quality is having the greatest impact on industry earnings as insured institutions continue to set aside reserves to cover loan losses," Chairman Bair noted. "Of all the major earnings components, the amount that insured institutions added to their reserves for loan losses was, by far, the largest drag on industry earnings compared to a year ago."

All told, more than 28 percent of all insured institutions reported a net loss in the second quarter, compared with 18 percent a year earlier.

Financial results for the second quarter and first half of 2009 are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the major findings:

Net interest margins improved in the quarter. The average margin (the difference between the average yield on interest-earning assets and the average interest expense of funding those assets) rose to 3.48 percent from 3.39 percent in the first quarter and 3.37 percent in the second quarter of 2008. More than half of all institutions reported higher margins than in the first quarter. Net interest income totaled $100 billion in the quarter, up from $96.6 billion a year earlier.

Net interest margins improved from the previous quarter at community banks and at larger institutions. "This is good news for community banks, since three-fourths of their revenues come from net interest income," Chairman Bair said.

Total assets of insured institutions declined by $238 billion. A $125.5 billion decline in loan and lease balances accounted for more than half of the decline in total assets of insured institutions during the second quarter. The 1.8 percent decline in industry assets followed a $303.2 billion decline in the first quarter of 2009. Banks' balances with Federal Reserve banks fell by $99.4 billion (20.4 percent) during the quarter, and assets in trading accounts declined by $65.5 billion (7.9 percent). The industry's investment securities portfolio increased by $130.6 billion (5.9 percent).

The number of institutions on the FDIC's "Problem List" rose. At the end of June, there were 416 insured institutions on the "Problem List," up from 305 on March 31. This is the largest number of institutions on the list since June 30, 1994, when there were 434 institutions on the list. Total assets of "problem" institutions increased during the quarter from $220.0 billion to $299.8 billion, the highest level since December 31, 1993.

Total reserves of the Deposit Insurance Fund (DIF) stood at $42 billion. Just as insured institutions reserve for loan losses, the FDIC has to provide for a contingent loss reserve for future failures. To the extent that the FDIC has already reserved for an anticipated closing, the failure of an institution does not reduce the DIF balance. The contingent loss reserve, which totaled $28.5 billion on March 31, rose to $32.0 billion as of June 30, reflecting higher actual and anticipated losses from failed institutions. Additions to the contingent loss reserve during the second quarter caused the fund balance to decline from $13.0 billion to $10.4 billion. Combined, the total reserves of the DIF equaled $42.4 billion at the end of the quarter.

Chairman Bair distinguished the DIF's reserves from the FDIC's cash resources, which included $22 billion of cash and U.S. Treasury securities held as of June 30, as well as the ability to borrow up to $500 billion from the Treasury. "A decline in the fund balance does not diminish our ability to protect insured depositors," Chairman Bair concluded.

# # #

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,195 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-153-2009


Last Updated 8/27/2009 [email protected]
ActiveIngredient

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08/27/2009 10:17 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Press release is up now:

FDIC-Insured Institutions Lost $3.7 Billion in the Second Quarter of 2009
[link to www.fdic.gov]

Damn that is one ugly year-over-year comparison from last year. "An aggregate net loss of $3.7 billion in the second quarter of 2009, a decline of $8.5 billion from the $4.8 billion in profits the industry reported in the second quarter of 2008."
 Quoting: snark


It looks like that $8.5 billion year-on-year loss includes the $5.5 billion FDIC assessment. So the banking industry overall seems to have paid a high price for insuring the accounts in all the failed banks.

If they have to do another assessment at the end of September, there may not be much left to assess.
snarkModerator
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08/27/2009 10:18 AM

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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Here's the bottom line, though. Virtually unlimited printed money to save the day.
"Chairman Bair distinguished the DIF's reserves from the FDIC's cash resources, which included $22 billion of cash and U.S. Treasury securities held as of June 30, as well as the ability to borrow up to $500 billion from the Treasury. "A decline in the fund balance does not diminish our ability to protect insured depositors," Chairman Bair concluded."
T For Texas, T For Tennessee!


The virtue of courage is a prerequisite for the practice of all other virtues, because otherwise one is virtuous only when virtue has no cost. There are times when something needs to be done, and yet we know that if we step up and do this needful thing, we will pay a heavy personal price. -C.S. Lewis
Anonymous Coward
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08/27/2009 10:26 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
[link to www.marketwatch.com]

FDIC: Number of troubled banks rises to 416
(from 350)

brother.
ActiveIngredient

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08/27/2009 10:26 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Here's the bottom line, though. Virtually unlimited printed money to save the day.
"Chairman Bair distinguished the DIF's reserves from the FDIC's cash resources, which included $22 billion of cash and U.S. Treasury securities held as of June 30, as well as the ability to borrow up to $500 billion from the Treasury. "A decline in the fund balance does not diminish our ability to protect insured depositors," Chairman Bair concluded."
 Quoting: snark


Yep. It's another back-door inflationary bank bailout.
ActiveIngredient

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08/27/2009 10:29 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
FDIC balance sheet includes assets acquired from failed banks that don't represent cash currently, but rather potential cash from future sale of those assets.

So...they're in the same boat now as the banks they're supposed to insure.
<<<FOCUS>>>

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08/27/2009 10:43 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
and there goes the dow -68
Anonymous Coward
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08/27/2009 10:47 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
and thus, it begins......
ActiveIngredient

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08/27/2009 10:51 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
and there goes the dow -68
 Quoting: <<<FOCUS>>>


None of it's going into treasuries, though. TNX and dollar are both pretty steady.
ActiveIngredient

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08/27/2009 10:56 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Full report is available now, too, in addition to the press release:

[link to www2.fdic.gov]

Archived video of the press conference is there, too.
Anonymous Coward
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08/27/2009 10:59 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
According the fdic.gov site, the 2nd quarter only lost 3.7 billion dollars and 42 billion is available to cover more losses.

I'm not a math major, nor do I play one on TV but something don't add up.
Anonymous Coward
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08/27/2009 11:04 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
According the fdic.gov site, the 2nd quarter only lost 3.7 billion dollars and 42 billion is available to cover more losses.

I'm not a math major, nor do I play one on TV but something don't add up.
 Quoting: Anonymous Coward 757606



According to my calculations, the 42 billion can cover over 11.35 more quarters, assuming the rate of loss remains the same.

That's 34 months, or almost 3 years.

chorus cheers
ActiveIngredient

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08/27/2009 11:08 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
According the fdic.gov site, the 2nd quarter only lost 3.7 billion dollars and 42 billion is available to cover more losses.

I'm not a math major, nor do I play one on TV but something don't add up.
 Quoting: Anonymous Coward 757606


The REMAINING banks, those that weren't closed down, still lost $3.7 billion dollars.

Of those banks, 416 are on the "problem" list and will probably fail.

The insured assets of the "problem" banks grew to $299.8 billion, the highest level since December 31, 1993.

So, that's $42 billion in the DIF to cover almost $300 billion in assets. And that's just for the "problem" banks.
ActiveIngredient

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08/27/2009 11:10 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***

assuming the rate of loss remains the same
.

 Quoting: Anonymous Coward 648213


Anyone else here not entirely comfortable with that assumption? ;-)
Anonymous Coward
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08/27/2009 11:12 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
I say we party until 2012!!!!

cheers cheers cheers cheers cheers

Party like it's 1999!!
Anonymous Coward
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08/27/2009 11:13 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
According the fdic.gov site, the 2nd quarter only lost 3.7 billion dollars and 42 billion is available to cover more losses.

I'm not a math major, nor do I play one on TV but something don't add up.


The REMAINING banks, those that weren't closed down, still lost $3.7 billion dollars.

Of those banks, 416 are on the "problem" list and will probably fail.

The insured assets of the "problem" banks grew to $299.8 billion, the highest level since December 31, 1993.

So, that's $42 billion in the DIF to cover almost $300 billion in assets. And that's just for the "problem" banks.
 Quoting: ActiveIngredient


also, according to the FDIC, at the end of March 2009, there was only 13 billion in the DIF fund. We had several banks close since then and 2 of them would have cost 6 billion, according to the FDIC. As of a couple weeks ago thre was only 600 million in the DIF fund. Add the 2 banks that failed which cost them 6.6 billion and that would make them negative 6 billion.

Now all of the sudden they have 42 billion? Where did it come from.
Anonymous Coward
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08/27/2009 11:16 AM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
It's just a ploy. This collapse is going full speed ahead.
Anonymous Coward
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08/27/2009 12:07 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
YOu cant spend your way out of debt..they know that..they are just bluffing everyone until they come up with something different...and also spending our money while they do find some other way..but i think they are running out of time the bubble on all this is getting ready to burst and all of them will be in the fallout area when it happens..hope they all have second careers going.
Anonymous Coward
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08/27/2009 12:49 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
bump



uh oh


hiding
Harry Schultz
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08/27/2009 12:58 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
500~1000 banks are in line waiting for FDIC
Remember what Sheila Bair reported to senator Jim Bunning recently. 500 banks are in trouble and the FDIC needs money. Harry Schultz says the same thing. Jim Willie says aprox. 1000 could close. Harry Schultz says possible bank holiday on 8/26 /FDIC reports 8/25. Its coming folks, be prepared, have some cash at home just in case.

[link to investment-blog.net]
deteriorating economic conditi
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08/27/2009 01:17 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
Its real simple


FDIC only has $52 Billion to insure $4.2 Trillion in Deposits

AP

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.

lot to say on this


and a Ron Paul audit is Rolling


[link to godssecret.wordpress.com]
Anonymous Coward
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08/27/2009 01:23 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
this new market is so detached from reality


its disturbing.

its going to tank hard as fuck though when it does, unfornantely
Anonymous Coward
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08/27/2009 01:35 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
This is the biggest story of the month, and all you fucking loons are posting in threads about skulls and God and your shitty little health care reform.

Its no wonder numbers have no importance anymore, everyone just wants to care about things they can SEE. They dont want to see numbers.
Anonymous Coward
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08/27/2009 01:37 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
So what, the Feds just print more money and the FDIC is now flush with cash.

No bank holiday, no bank run. Just more "creative" economics to hide how bad things really are.
Anonymous Coward
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08/27/2009 01:49 PM
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Re: ***FDIC QUARTERLY REPORT 10AM TODAY***
It will all even out when the meteor arrives.

anonstoner

That will impact the markets more than any report.





GLP