Tag Archives: FDIC

  • Podcast

    Bill Black: Our System is So Flawed That Fraud is Mathematically Guaranteed

    How did we allow things to get this bad?
    by Adam Taggart

    Saturday, May 25, 2013, 5:06 PM

    9

    [Chris lost his voice this week due to illness, so we were unable to record a new podcast. So while Chris recuperates, enjoy this excellent discussion from the archives will Bill Black, recorded a year ago, on the pervasive control fraud within our current financial system. ~ Adam]

    “When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."  ~ Frederic Bastiat

    Bill Black is a former bank regulator who played a central role in prosecuting the corruption responsible for the S&L crisis of the late 1980s. He is one of America's top experts on financial fraud. And he laments that the U.S. has descended into a type of crony capitalism that makes continued fraud a virtual certainty while increasingly neutering the safeguards intended to prevent and punish such abuse.

    In this extensive interview, Bill explains why financial fraud is the most damaging type of fraud and also the hardest to prosecute. He also details how, through crony capitalism, it has become much more prevalent in our markets and political system. 

    A warning: There's much revealed in this interview that will make your blood boil. For example, the Office of Thrift Supervision. In the aftermath of the S&L crisis, this office brought 3,000 administration enforcement actions (a.k.a. lawsuits) against identified perpetrators. In a number of cases, they clawed back the funds and profits that the convicted parties had fraudulently obtained.

    Flash forward to the 2008 credit crisis, in which just the related household sector losses alone were over 70 times greater than those seen during the entire S&L debacle. So how many criminal referrals did the same agency, the Office of Thrift Supervision, make?

    Zero.

    Read More »

  • Blog

    Daily Digest – September 30

    by Davos

    Wednesday, September 30, 2009, 2:48 PM

    0
    • John Williams of Shadow Statistics: Liquidity Crisis (Again!) Not a Recovery, Dire Shape
    • World Bank Head Sees Dollar’s Role Diminishing
    • FDIC Bankrupt? Uh huh.
    • Mark To Myth Losers: Americans
    • The Case for Inflation
    • Hyperinflation is Coming! Weimar Republic of Germany
    • Simon Johnson: Prospects for Your Future (Video on page)

    Read More »

  • Blog

    Feds In A Box – Unwinding May Not Be So Easy

    by Chris Martenson

    Thursday, September 10, 2009, 9:19 PM

    0

    One of the key questions is, “Can the Fed ever unwind all of the positions it has taken on from failed banks and Wall Street firms?”

    This is an important question, because if the answer is “No, at least not precisely when they wish to do it,” then it raises the risk that all that hot money will prove immune to efforts to recall it and it will whiz around creating all sorts of monetary trouble.

    Now that the Fed has declared that the recession has ended and green shoots are everywhere, the next obvious part of this journey will have to be the unwinding of the massive amounts of stimulus and thin-air money that has been injected into the system.

    Certainly after watching the risk-money out-chasing junker stocks well up off their lows, we can surmise that the speculative animal juices are flowing again and that the Fed might want to consider taking away the punchbowl.

    Instead, today the Fed bought another $18.8 billion net ($32.4 billion gross) in agency mortgage-backed securities, which represents the exchange of thin-air money for GSE MBS paper.

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  • Blog

    Daily Digest – August 29

    by Davos

    Saturday, August 29, 2009, 3:02 PM

    0
    • The FDIC To Draw On Its Line Of Credit Treasury Soon
    • Brazil Travel
    • FDIC Dissembling Again
    • Unemployment Report 8/27 – Flat And Bad
    • The End of the Dollar
    • A Member of the Delusional Set Slips Up
    • Wages: Bungee Jumping Without a Cord (Chart)
    • Max Keiser (Yuan’s not Dollars) (Video, as seen on www.theComingDepression.com)

    Read More »

  • Blog

    Daily Digest – August 18

    by Davos

    Tuesday, August 18, 2009, 2:40 PM

    0
    • Two Beers With Steve – Unsustainable Trends Eventually End with Nathan Martin
    • True Green Shoots: New battery could change world, one house at a time (H/T JoeManC)
    • Zimbabwe Bus Fare is 3 Trillion Dollars
    • Bond Guru Bill Gross Living Large in California (Video on page)
    • Anemic Foreign Bond Sales: Foreigners’ Cumulative 12-Month Net Purchases-Sales of U.S. Assets (Chart)
    • Americans Had to Work from January 1 to August 12 This Year Just to Cover Cost of Government (Repost, H/T DrKurbyLuv)
    • China to Buy $2 Billion Worth of US Mortgages (H/T PineCarr)
    • Why “Normal” WILL NOT Return (Video, Repost)
    • “Denial ain’t just a river in Egypt” – Mark Twain
    • Barney Frank Chairman of the House Financial Services Committee (Video)
    • Faber Video: Big Crisis Ahead
    • WSJ: Loss Rates for FDIC higher than during S&L Crisis
    • Labor Day to Halloween Fright Show
    • “Self-Preservation” Bodes Ill for U.S. Economy

    Read More »

  • Blog

    The FDIC Is Broke – Now What?

    by Chris Martenson

    Monday, August 17, 2009, 9:13 PM

    0

    This blog post is the most recent Martenson Report, which I am now making available for wider distribution.  I believe this needs to be read and understood by as many people as possible. 


    Sunday, August 16, 2009

    Executive Summary

    • With the most recent bank failures, the FDIC is out of funds.
    • The FDIC is levying a one-time fee on member banks to cover the shortfall, but it will not be enough and it punishes the prudent.
    • The FDIC has been suspiciously slow at shutting down banks that have admittedly already failed.
    • Banks have been allowed to overestimate the actual worth of their assets using “mark-to-fantasy” accounting.
    • Hundreds of banks are likely already mortally wounded and set to fail.
    • The FDIC means well, but creates a moral hazard the effects of which now haunt us.
    • Take prudent action: Choose only high-rated banks, and keep cash out of the bank.

      Read More »

  • Blog

    Daily Digest – August 6

    by Davos

    Thursday, August 6, 2009, 3:00 PM

    0
    • One Simple Good Question
    • Shelly’s Thread on State Mandates
    • ICN, Audit the Fed and 18 Million Vacant Homes (Video, H/T iDoctor)
    • Housing Recovery: About half of U.S. mortgages seen underwater by 2011
    • Will Acute Distress in the Baltics Blow Back to Europe?
    • Things Fall Apart: Complexity, Supply Chains, Infrastructure & Collapse (H/T SuzieG)
    • What the Fed is REALLY Trying to Hide In Fighting an Audit (H/t HuckleJohn)
    • He’s Back: PennyMac IPO brings back subprime memories (H/T Jeff Borsuk)
    • Dylan Ratigan – “Playing a parlor game at America’s expense…” (Video on page)
    • Monday August 4, 2008 Housing Collapse Ahead? Not According to the Data (http://www.ritholtz.com/)
    • Resource: Failed Bank List with Enforcement Documents
    • Warning Related To The FDIC
    • Inflation (Video, Second one on page, H/T JoeManC)

    Read More »

  • Blog

    Daily Digest – August 5

    by Davos

    Wednesday, August 5, 2009, 2:55 PM

    0
    • Bloggers: The New Financial Media
    • Blogger Setser takes post with National Economic Council
    • Bill Moyers: Wendell Potter (Video, ex – Health Insurance Media Executive)
    • Federal Tax Revenues – Cliff Diving and Data Hiding…(CM Quoted)
    • The Ultimate Suckers’s Rally
    • FDIC Report & The Top Secret Plan C (Repost)
    • Residential Real Estate Inventories (Chart from The Big Picture Blog)
    • Residential Real Estate Inventories DOM MOM (Da

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  • Blog

    Daily Digest – August 3

    by Davos

    Monday, August 3, 2009, 3:02 PM

    0
    • Financial Sense News Hour Part 3B – Euthanasia Health Care Real Player, WinAmp, Windows Media Mp3 (Audio)
    • 1.6 Trillion Dollar Euthanasia Health Care Plan to Bankrupt the U.S. Fix Medicare
    • From Drudge: Warning: Oil supplies are running out fast
    • Bailout Nation
    • Why Bernanke is in panic mode (H/T Jeff Borsuk)
    • FDIC Report & The Top Secret Plan C
    • Sunday Funnies (A day late – humor)
    • Cash For Clunkers Site: Your Computer is now the property of the US Gov’t? (Fox Video)
    • A conversation with Robert Shiller on Charlie Rose
    • Guns R US
    • Where is the Public Outrage Over Pensions?
    • DECLINE AND FALL OF THE AMERICAN EMPIRE
    • The $328,835.00 Taxpayer Funded Photo Album (PDF)
    • Annaly Capital: Sherlock Holmes And The Mystery Of The Green Shoots (White-paper)
    • Alt-A Loans and Pesky Resistant Subprime Loans: The Lingering Mortgage Beast. $1.1 Trillion in Active Toxic Waste Mortgages. PennyMac Ready for Toxic Mortgages. What Happened to the Public-Private Investment Program?

    Read More »

  • Blog

    Daily Digest – June 24

    by Davos

    Wednesday, June 24, 2009, 2:54 PM

    0
    • Russia, Venezuela sign $4 bln joint bank deal
    • Alternate Elliott Wave Possibility…
    • 1931, again, what if?
    • Update on Bonds
    • California Collapsing (H/T Nate)
    • FDIC’s Bair: ‘Too Big to Fail’ must end
    • Another Hotel Defaults on Mortgage Debt
    • Local Shelters Lose Food Aid Because Of Fees
    • Hey New York – You’re Next After California
    • Downey Savings and Loan: The Anatomy of an Option ARM led California Banking Disaster. Other People’s Money Delusion
    • New California Law Will Have Impact on Small CA Websites Including LATOC Blogger (SuzieGruber)

    Read More »