[hope_full]

FDIC says overwhelming majority of U.S. banks are safe
Sun Jul 13, 2008 5:34pm EDT
NEW YORK (Reuters) - The head of the Federal Deposit Insurance Corp said on Sunday the vast majority of U.S. banks are safe, moving to quell any concerns bank customers may have after regulators seized IndyMac Bancorp Inc, once one of the largest U.S. mortgage lenders.

"All bank depositors should understand that their insured deposits are safe," Chairman Sheila Bair said. "The chance that your own bank will be taken over by the FDIC is extremely remote. And if that does happen, you will continue to have virtually uninterrupted access to your insured deposits.

link

I'm not sure what to think about this. It sounds a little worrisome that we're being told (again) "DO NOT PANIC!"

[alpha480v]

So does the fdic expect a run on the banks when they open monday?

[americandream]

FDIC says overwhelming majority of U.S. banks are safe Sun Jul 13, 2008 5:34pm EDT
NEW YORK (Reuters) - The head of the Federal Deposit Insurance Corp said on Sunday the vast majority of U.S. banks are safe, moving to quell any concerns bank customers may have after regulators seized IndyMac Bancorp Inc, once one of the largest U.S. mortgage lenders.
"All bank depositors should understand that their insured deposits are safe," Chairman Sheila Bair said. "The chance that your own bank will be taken over by the FDIC is extremely remote. And if that does happen, you will continue to have virtually uninterrupted access to your insured deposits.

link

I'm not sure what to think about this. It sounds a little worrisome that we're being told (again) "DO NOT PANIC!"

What do they mean by "virtually uninterrupted"? Is my money going to be accessible at will or not? That's all that concerns me. I have bills to pay and they aren't virtually payable!

[heroineworshipper]

As long as any of us R still capable of being productive slaves, the banks will survive.

[Kingcoal]

I have a feeling that tomorrow is going to be an interesting day.
Link

"There is concern and speculation that Freddie, Fannie and Lehman won't be around on Monday," said Phil Orlando, chief equity market strategist at Federated Investors, referring to problems at the nation's largest mortgage purchasers Freddie Mac and Fannie Mae, which both were rocked again Friday, along with Lehman, the fourth-largest investment bank in the U.S.

[Heineken]

Reduce your dollar holdings to the absolute minimum necessary to conduct your daily transactions and pay your monthly bills. All the rest should be in PMs, land, house, and survival infrastructure.

[DantesPeak]

"All bank depositors should understand that their insured deposits are safe"
And uninsured deposits are not safe.
I envision a mini-panic, maybe becoming a full blown, financial panic as depositors reallocate their uninsured savings into Treasury bills. The rate on the one month Treasury bill may well be at or near zero before long.

[Heineken]

I heard on the network TV news tonight (ABC or NBC) that 90 more banks are in imminent risk of failure.

[IndigoMoon]

Is Global Research.ca a reliable source?
Let the Lawsuits Begin: Banks Brace for a Storm of Litigation FULL STORY HERE

In an article in The San Francisco Chronicle in December 2007, attorney Sean Olender suggested that the real reason for the subprime bailout schemes being proposed by the U.S. Treasury Department was not to keep strapped borrowers in their homes so much as to stave off a spate of lawsuits against the banks. The plan then on the table was an interest rate freeze on a limited number of subprime loans. Olender wrote:

"The sole goal of the freeze is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value – right now almost 10 times their market worth. The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.

". . . The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC . . . .

"What would be prudent and logical is for the banks that sold this toxic waste to buy it back and for a lot of people to go to prison. If they knew about the fraud, they should have to buy the bonds back."

[IslandCrow]

"...virtually uninterrupted access," huh? That's so reassuring. Not.

Well with the recent take over, the announced plan was that the internet banking would be down all weekend and only come back on Monday (too early on Monday to tell if this happens), but that checks could still be written and that they would be honored (provided they were covered by the insurance).

[Fiddlerdave]

What do they mean by "virtually uninterrupted"? Is my money going to be accessible at will or not? That's all that concerns me. I have bills to pay and they aren't virtually payable!

Read your accounts' fine print. Its only been "accessible at will" because they haven't needed to hold onto your funds.

[Ferretlover]

HHHmmm... Somewhere here, there is a post which contains the link to a website that lists banks and their financial health. Does anyone remember where it is?

[Heineken]

The IndyMac thing was very professionally managed, don't you think? Low-key, carefully worded announcement after the market close on Friday, more careful posturing and bail-out maneuvers (for Freddie and Fannie) over the weekend, and now . . . market futures are up! Crisis all patched up, the shell game can go on!