Friday, December 18, 2009

FDIC fighting for survival
This Wall Street Journal article tells how Sen. Chris Dodd and Treasury Secretary Geithner try to strip the FDIC of practically of all bank supervisions even though FDIC chair Sheilar Bair was the only government official who predicted a wave of foreclosures back in 2007 when she directed her staff to study securitized subprime loans from 2004-2005 and discovered that 75% of them carried balloon payments due in a few years.

The article described a July meeting called by Geithner with Bair and Fed chairman Ben Bernanke in attendance where Geithner used profanity. Here is an excerpt from the article, "Mr. Geithner immediately lit into the regulators in an expletive-laced fury, at times raising his voice to the verge of shouting, according to several people familiar with the meeting."

Remember Geithner cheated on his tax return and had to pay back taxes during his confirmation hearing.

That article says 133 banks had failed year to date. But 7 more banks failed on Friday, making the total at 140.