Tilted Forum Project Discussion Community - View Single Post - And another one down...Bank Crisis Round 3

Baraka_Guru · 01-30-2010, 02:12 PM

I read a story about how the FDIC assumes control of banks. It's actually quite fascinating. It's like a movie, where the FBI task force descends on a criminal operation and seizes control of it in one fell swoop. Well, except it's the FDIC's hired bankers, accountants, lawyers, and auctioneers, and they take over a bank suffering from a financial tsunami.

What was really interesting was how they do it right at closing on Friday so that the bank can reopen again on the Monday, with a new owner and an FDIC greeter to tell customers what went down and how their assets are now safe.

They do it like this to prevent runs and thereby maintaining a reasonable sale price to attract enough buyers to assume the takeover.

You do what you gotta do, I guess. And apparently it happens every week these days.

A real-estate aftershock was expected, and here we are.

Oh, and no scheme, I don't think.... just business as usual on the meltdown cleanup.

01-30-2010, 02:12 PM	#2 (permalink)
Baraka_Guru warrior bodhisattva Super Moderator Location: East-central Canada	I read a story about how the FDIC assumes control of banks. It's actually quite fascinating. It's like a movie, where the FBI task force descends on a criminal operation and seizes control of it in one fell swoop. Well, except it's the FDIC's hired bankers, accountants, lawyers, and auctioneers, and they take over a bank suffering from a financial tsunami. What was really interesting was how they do it right at closing on Friday so that the bank can reopen again on the Monday, with a new owner and an FDIC greeter to tell customers what went down and how their assets are now safe. They do it like this to prevent runs and thereby maintaining a reasonable sale price to attract enough buyers to assume the takeover. You do what you gotta do, I guess. And apparently it happens every week these days. A real-estate aftershock was expected, and here we are. Oh, and no scheme, I don't think.... just business as usual on the meltdown cleanup. __________________ Knowing that death is certain and that the time of death is uncertain, what's the most important thing? —Bhikkhuni Pema Chödrön Humankind cannot bear very much reality. —From "Burnt Norton," Four Quartets (1936), T. S. Eliot Last edited by Baraka_Guru; 01-30-2010 at 02:32 PM..