FDIC too broke to Takeover Banks? No Bank Failure Friday on Black Friday. Can 5,300 Employees Deal with $5.3 Trillion in Deposits?
The Federal Deposit Insurance Corporation (FDIC) was hammered this week when a third quarter report demonstrated that the FDIC was running in the red to the sum of $8.2 billion. This is troubling since the FDIC protects deposits in member banks up to $250,000 and funds covered by the deposit insurance fund (DIF) are over […]
It might seem like cognitive dissonance to think about inflation in the midst of falling housing prices. The Consumer Price Index (CPI) tracked by the Bureau of Labor and Statistics shows that housing makes up 43 percent of the entire index. Of this, 24 percent is made up of a category called owners’ equivalent rent […]
Wells Fargo Solution to Option ARM Problem? Convert all Pick-A-Pay Mortgages to Interest Only Loans.
2010 will be a big year for four states because that is when the option ARMs are suppose to recast in droves. State Attorney General Jerry Brown of California sent a letter to the top 10 option ARM servicers and banks late last week requesting information requiring firms to stipulate how much of these loans […]