Monkeyfister

Labels: Garden Harvest

Sept. 6 (Bloomberg) -- Treasury Secretary Henry Paulson is preparing to announce plans to bring Fannie Mae and Freddie Mac under government control, seeking to halt the crisis of confidence in the companies that make up almost half the U.S. mortgage market.

Paulson met with Fannie Mae Chief Executive Officer Daniel Mudd and Freddie Mac CEO Richard Syron yesterday to tell them of the decision to put the companies into a conservatorship, where they would be removed from their jobs, according to a person briefed on the discussions. A public announcement is expected this weekend, the person said.

The decision follows the Treasury chief's repeated comments to lawmakers in July that he wasn't likely to use taxpayer funds to prop up the federally chartered, shareholder-owned firms hit by $14.9 billion in losses the past year. The shares of both companies slid since Paulson won powers to inject unlimited funds in the companies, and their borrowing costs rose.

Pacific Investment Management Co., manager of the world's biggest bond fund, and other large investors may put in their own money once the Treasury decides to inject government funds, said Newport Beach, California-based Pimco fund manager Bill Gross, in a Bloomberg Television interview.

``They have to open their wallet,'' Gross said, predicting that the Treasury will act this weekend before the Federal Housing Finance Agency releases an assessment of Fannie's and Freddie's capital.

Briefing Campaigns

Paulson gathered with Federal Reserve Chairman Ben S. Bernanke, FHFA director James Lockhart, Syron and Mudd in Washington. The Treasury plans to brief Democratic presidential candidate Barack Obama's campaign team today and has contacted Republican contender John McCain's staff about its intentions.

Labels: Failed Industry, Fannie Mae and Freddie Mac, Real Estate Crash

Last evening, we asked what are the costs and consequences, as well as the market reaction to, the imminent bailout of Fannie Mae (FNM) and Freddie Mac (FRE). Your responses were inspired and informative.

This morning, its page one news. Here's what the major papers are suggesting is the likely outcome:

• Conservatorship: Fannie Mae and Freddie Mac will be brought under government control; The assumption is this is a temporary measure (12-24 months);

• Management: will be kicked out, starting with Fannie Mae CEO Daniel Mudd as well as Freddie Mac CEO Richard Syron. (No word if Charlie Gasparino is defending the two on CNBC). The current Board of Directors would also be fired;no word on other senior management;

• Shareholders: Speculation is that most (but not all) of the common stock would be diluted but not wiped out; Company debt and preferred shares are likely to be protected according to the Washington Post. A variation comes The New York Times, which stated that both the common and the preferred "would be reduced to little or nothing."

• Mortgages: held by FNM/FRE would be guaranteed by taxpayers. This is approximately $5-6 trillion dollars (the vast majority of these are sound).

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Anytime the government obtains authority to do something -- go to war, spend money on bailouts -- it is identical to actually authorizing the act -- meaning, it eventually occurs. Claiming its merely granting authority only serves to make the act more politically palatable, but don't ever kid yourself -- it is no different than the actual act.

In practice, the act of authorizing a fill in the blank (war, bailout, whatever) is the same as declaring (war, bailout). The two are identical.

Labels: Collapse, Fannie Mae and Freddie Mac, Real Estate Crash

WASHINGTON (AP) -- Regulators on Friday shut down Silver State Bank, saying the Nevada bank failed because of losses on soured loans, mainly in commercial real estate and land development.

It was the 11th failure this year of a federally insured bank.

Nevada regulators closed Silver State and the Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Henderson, Nev. It had $2 billion in assets and $1.7 billion in deposits as of June 30.

Andrew K. McCain, a son of Republican presidential nominee John McCain, sat on the boards of Silver State Bank and of its parent, Silver State Bancorp, since February but resigned in July after five months citing "personal reasons," corporate filings with the Securities and Exchange Commission show. Andrew McCain also was a member of the bank's audit committee, responsible for oversight of the company's accounting.

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Silver State Bank customers with accounts exceeding $100,000 can contact the FDIC at 1-800-523-8177 to set up an appointment to discuss their deposits.

Labels: Bank Failure Friday, Collapse, Fail, Real Estate Crash

Labels: My Life As It Is

Labels: 2008 Election, 2008 GOP Convention, 2008 Presidential Race, John McCain

Labels: John McCain, Navy Jonah, St. John McCain

Labels: Republicans

Labels: Hannity, Jon Stewart, Karl Rove, O'Reilly, The Daily Show

Labels: 2008 GOP Convention, Sarah Palin, Sue Scott

Family Values Republican Style

Meet America's first trailer-trash vice-presidential candidate: Governor Sarah Palin of Alaska ("the state closest to Russia!" )-- soon-to-be grandmother of out-of-wedlock child carried by 17-year-old daughter, Bristol. Shown here relaxing, Alaska-style.

Labels: Republican Christian Values, Republican Family Values, Republican Values, Sarah Palin

But no matter where you live, realize this much is certain:

Realize that someone, whether they are your friends or not, is going to get hit. Realize that Jamaica and the surrounding islands are being torn up by Gustav as you read this, realize especially that Cuba is almost sure to suffer a devastating storm surge, no matter what. Realize that after that, Gustav will sit and recover, then keep on coming and wreak more damage, closer to home.

Realize that right now is the time to make your online donations, buy groceries for the food bank shipment, look up who in your community is putting together the truckloads of clothing and food and water, and if no one is, then maybe you could start.

Just do it. Because it’s certain that people, whether it’s your friends and neighbors or not, need that help as soon as it’s humanly possible to get it to them.

Labels: Disaster Relief, Gulf Coast, Gustav, Hurricanes, New Orleans

Labels: Hurricanes, Off-Shore Drilling, Oil, Oil Disaster

Labels: Debt Economy, Debt Society, Student Loans

Regions Bank Acquires All the Deposits of Integrity Bank, Alpharetta, Georgia

FOR IMMEDIATE RELEASE
August 29, 2008
Media Contact:
David Barr (202) 898-6992
Cell: 703-622-4790
dbarr@fdic.gov

Integrity Bank, Alpharetta, Georgia, with $1.1 billion in total assets and $974.0 million in total deposits as of June 30, 2008, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation was named receiver.

The FDIC Board of Directors today approved the assumption of all the deposits of Integrity Bank by Regions Bank, Birmingham, Alabama. All depositors of Integrity Bank, including those with deposits in excess of the FDIC's insurance limits, will automatically become depositors of Regions Bank for the full amount of their deposits, and they will continue to have uninterrupted access to their deposits. Depositors will continue to be insured with Regions Bank so there is no need for customers to change their banking relationship to retain their deposit insurance.

The failed bank's five offices will reopen Tuesday, September 2nd, as branches of Regions Bank. However, for the time being, customers of both banks should use their existing branches until Regions Bank can fully integrate the deposit records of Integrity Bank.

Regions Bank has agreed to pay a total premium of 1.012 percent for the failed bank's deposits. In addition, Regions Bank will purchase approximately $34.4 million of Integrity Bank's assets, consisting of cash and cash equivalents. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today's transaction or who would like more information about the failure of Integrity Bank can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/integrity.html, or call the FDIC toll-free at 1-800-523-0640, today from 5 p.m. until 9 p.m., Eastern Time, on Saturday from 9 a.m. to 6 p.m., on Sunday from 11 a.m. to 5 p.m., and thereafter from 8 a.m. to 8 p.m.

The FDIC estimates that the cost to its Deposit Insurance Fund will be between $250 million and $350 million. Regions Bank's acquisition of all deposits was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to all alternatives because the expected losses to uninsured depositors were fully covered by the premium paid for the failed bank's franchise.

Integrity Bank is the tenth FDIC-insured bank to fail this year, and the first in Georgia since NetBank in Alpharetta on September 28, 2007.

Labels: Bank Failures, Collapse, FDIC, Real Estate Crash

McCain and Palin Campaign Rally
Senator John McCain and Governor Sarah Palin held a "Road to the Convention" campaign rally at T.R. Hughes Ballpark in O'Fallon, Missouri.

Labels: 2008 Election, 2008 GOP Convention, Republicans