Government preparing for FINANCIAL MELTDOWN???
July 21, 2008
– Comments (3)
Thursday:
The Federal Deposit Insurance Corp., led by Chairman Sheila Bair, on Thursday issued new rules requiring around 160 of the largest banks -- those with at least $2 billion in domestic deposits and either $20 billion in assets or 250,000 deposits accounts -- to adopt new procedures allowing banking regulators to settle existing accounts in the event of a bank failure....
The new rules for large banks will require them to standardize the information they provide to the FDIC on deposit accounts, and to put in systems to automatically post possible holds on very large deposit accounts.
http://online.wsj.com/article/SB121632439187562885.html
Sunday
AP
Paulson braces public for months of tough times
Treasury chief braces people for months of tough times ahead, says US banking system is sound
http://biz.yahoo.com/ap/080721/paulson_economy.html
Monday
Goldman Sachs Group Inc.'s most senior financial-institutions banker, Ken Wilson, is temporarily leaving the firm to advise Treasury Secretary Henry Paulson on how to resolve the country's banking crisis, according to people familiar with the matter.
http://online.wsj.com/article/SB121660908385169563.html?mod=mktw
What the heck is going on? Is the banking system sound or not? Why must new rules be promulgated if everything "sound" as Paulson represents?
Why must taxpayers bail out FNM and FRE while its CEOs make millions and millions in bonuses?
Is something really screwed up here folks? A sound banking system but deposits may be held. The public forced to buy stock in failed companies while the executives make millions in salaries and bonuses?
Now GS's most senior banker is advising Paulson on how to resolve the banking crisis? I thought Paulson just told us the system is "sound?"
Something smells.....I am just not sure what....yet?
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