FDIC Urges Pensions to Invest in Failed Banks: Report

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Johnny Oxygen's picture
Johnny Oxygen
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FDIC Urges Pensions to Invest in Failed Banks: Report

FDIC Urges Pensions to Invest in Failed Banks: Report

http://www.cnbc.com/id/35761575

U.S. regulators are encouraging public pension funds that control more than $2 trillion to inject capital directly into the banking system by buying failed lenders, Bloomberg said, citing people briefed on the matter. 

The Federal Deposit Insurance Corp (FDIC) is trying to attract pension funds that want to buy stakes or assets of distressed bank holding companies, Bloomberg said.

Here they come. Your tax dollars aren't enough. Watch out for those 401k's and IRA's.

G-Money's picture
G-Money
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

How long before the word "Urges" in that headline is replaced with the word "Appropriates"?

Johnny Oxygen's picture
Johnny Oxygen
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

Or how far away are we from outright theft is wrapped up in the flag as being patriotic.

G-Money's picture
G-Money
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

Pretty sure we're there already man.

rocketgirl1's picture
rocketgirl1
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

My Husband just made the comment , "That's like putting on a helmet and jumping head first into the Grand Canyon and thinking you'll be fine."

 

LOL, just had to share Smile

Davos's picture
Davos
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report
rocketgirl1 wrote:

My Husband just made the comment , "That's like putting on a helmet and jumping head first into the Grand Canyon and thinking you'll be fine."

 

LOL, just had to share Smile

Funny. FSN part II had a bit on the FDIC this weekend. 22 billion in the red, propping up 2.5 trillion, another 700 banks on the troubled list. Add to that Warren's 3,000 community banks with troubled CRE and I'd say one thing is clear - a lot of folks have taken the plunge and just don't know it yet.

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rocketgirl1
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report
Davos wrote:
rocketgirl1 wrote:

My Husband just made the comment , "That's like putting on a helmet and jumping head first into the Grand Canyon and thinking you'll be fine."

 

LOL, just had to share Smile

Funny. FSN part II had a bit on the FDIC this weekend. 22 billion in the red, propping up 2.5 trillion, another 700 banks on the troubled list. Add to that Warren's 3,000 community banks with troubled CRE and I'd say one thing is clear - a lot of folks have taken the plunge and just don't know it yet.

 

I guess PM's are just another word for parachute.

Johnny Oxygen's picture
Johnny Oxygen
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

Pretty pretty parachute

Morpheus's picture
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

My company announced today that all portable pension lump sum dispersments are frozen due to the pension being underfunded. With a portable pension, if you leave (layoff, termination, or resignation) you can elect to roll over into an IRA or go nuclear. 

Not anymore. That's a LOT of cake that I just lost. It really hit me today, this crisis. And man, did it hit home. 

SagerXX's picture
SagerXX
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report
Morpheus wrote:

My company announced today that all portable pension lump sum dispersments are frozen due to the pension being underfunded. With a portable pension, if you leave (layoff, termination, or resignation) you can elect to roll over into an IRA or go nuclear. 

Not anymore. That's a LOT of cake that I just lost. It really hit me today, this crisis. And man, did it hit home. 

Oh, Morpheus, man.  That's heinous news.  I'm sorry.

All those "should I cash in my 401(k) / IRA / whatever" threads should get revived and quicklike.

Again man, I'm sorry about the news.

 

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nickbert
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

Ouch Morph, that's a major kick in the teeth. Well at least it didn't happen when you were only a year or two away from retirement.

I had a coworker who retired early last year.... he was only 55 or something, but at the end of the year the pension rules were going to change. He elected to retire early so he could take the lump sum; if he kept working, he would have lost that opportunity. Funny how he thought I was too pessimistic on the economy and such, but when it came to his pension he apparently wasn't so confident. Another coworker said he would have liked to do the same thing, but he was a couple years too young. As for me, well I knew I was hosed anyway... the odds of any of my pension being available for me in the 2030's (for early retirement age) or 2040's (for standard retirement age) are laughable.

Retirement for middle class is pretty much dead anyway IMO. Any retirement vehicle, whether social security, pension, or 401k, I see as a promise that will ultimately never be kept. Makes it less disappointing when they eventually try to pull the rug out from under me, though I still plan on putting the offending parties on my 'list'.  Not a Billy Madison 'people to kill' list, but the payback does involve among other things 'atomic wedgies'...

atomic wedgie

- Nickbert

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Erik T.
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report
Morpheus wrote:

My company announced today that all portable pension lump sum dispersments are frozen due to the pension being underfunded. With a portable pension, if you leave (layoff, termination, or resignation) you can elect to roll over into an IRA or go nuclear. 

Not anymore. That's a LOT of cake that I just lost. It really hit me today, this crisis. And man, did it hit home. 

Ouch! I'm really sorry to hear that, Pete. Hang in there. You're still far enough ahead of the masses in terms of your comprehension of what's going on that you'll fare far better than most, despite this outrageous setback.

Erik

 

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LogansRun
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

Sorry to hear that Pete!  We're here for you if you need anything!

 Being in our early 40's we decided to start  our lump payments on "profit sharing"  starting this year, because I knew this was coming.  We just got our first lump but I'm not counting on anything next year.  

And the collapse continues.  There are days I wish it would all just go BOOM, so we don't have to worry about it any longer and get on with sustainable life;-)

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Ken C
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report
Morpheus wrote:

My company announced today that all portable pension lump sum dispersments are frozen due to the pension being underfunded. With a portable pension, if you leave (layoff, termination, or resignation) you can elect to roll over into an IRA or go nuclear. 

Not anymore. That's a LOT of cake that I just lost. It really hit me today, this crisis. And man, did it hit home. 

Pete:

My condolences. That is a real screwing.

Makes me glad that I rolled my 403B into a couple of IRA's last year. I took it out before they could change the rules.

I  have since taken the hit and liquidated one of the IRA's. I guess paying WAY too much in tax for 2010 is better than losing 100% because they would steal it.

I am going to gamble and wait to liquidate the other IRA. I just hope the FEDS don't change the rules on IRA before then.

Best of luck

Ken

Johnny Oxygen's picture
Johnny Oxygen
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Re: FDIC Urges Pensions to Invest in Failed Banks: Report

Unfortunately here is more proof that doing-the-right-thing only applies to the debt serfs.

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