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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Living Wills for Dead Banks vs Live Lobster Farms

Living Wills for Dead Banks vs Live Lobster Farms


Banks are dead men walking just waiting for a forensic accounting autopsy. Thus, The Federal Deposit Insurance Corp. voted to require banks with $50 billion or more in assets to submit so-called living wills. Seven banks with more than $250 billion in assets will have to show their plans by July. The other 30 affected by the rule have until 2013. The FDIC also proposed a separate rule that would require banks with more than $10 billion in assets to conduct annual stress tests. The tests show how each bank is positioned to handle worsening economic conditions, such as increasing unemployment and falling home prices. The regulator put the rule out for public comment and is expected to finalize it by July. It will affect roughly 190 banks..

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24 Responses to "Living Wills for Dead Banks vs Live Lobster Farms"

  1. whiskerchild says:
    @deadman12078

    You might look into those well-built mini houses-on-wheels. If it’s mobile, maybe you can do an end run around the authorities.

  2. moofph says:
    …zombie banks run by vampire leeches sucking all the nutrients from the american dream.
  3. ACIMpsychology says:
    congrats on the Keiser Report appearance, Warren. Well done!
  4. deadman12078 says:
    @wepollock Oh, btw. My mother was on the city council when they passed the law for the minimum 1,000 square foot housing code. The kicker is she voted for the law… when I asked her about it she said she didn’t even read or understand it.
    Stark contrast with our representatives in DC and the state capitals.
    They don’t understand what they are doing. They only do what they do because they are told it’s for the best or if they feel there is something that can be gained.
  5. deadman12078 says:
    @wepollock Experiencing that now. Mother wanted a small house built… only 600 square feet. Kitchen, living room, full bath with washer/dryer, 1 bedroom. small efficient home for an aging woman. Local building code however said that it had to be a minimum of 1,000 square feet. With energy prices and building materials this makes no sense. But if you want to inflate land value it does. No qualms about structural, electrical, plumping code but it’s your home/property.. oh it’s gov’s
  6. InspireImages says:
    That bank owns my house. What happens when a bank like that fails, they default on their savings account holders but the loans continue to on to the new bank owner? Will I ever get my deed?
  7. duezeri1968 says:
    WEPollock is one of the few channels where I bother to read the comments from other viewers. Some of the most intelligent discourse on YouTube if you ask me. Thanks to Warren and everyone else.
  8. CrooksWithoutBorders says:
    The public doesn’t understand that FDIC insurance is for a discreet failure not systemic failure of the banking system. In the case of a systemic failure, your insured money could be tied up for years while it is being devalued. In other words, your deposits are ultimately worthless. Keeping cash on hand is not a bad idea along with American Eagle silver and gold.
  9. CrooksWithoutBorders says:
    @wepollock We also had to unwind a large liabilty future contracts in the hundreds of millions that was used for to hedge large MBOs that were underwritten by the savings bank and being serviced by it mortgage subsidiary. We send 5 officers to the federal pen.
  10. suzettegm says:
    Too cruel to put the forensic slaves threw that. Goes to prove once more the US is a barbaric nation with disregard for human rights.
  11. suzettegm says:
    Too cruel
  12. mlong5151 says:
    what would have happened if walmart got a banking lic. they tried.but ere denied
  13. wepollock says:
    @CrooksWithoutBorders The cross collateralization is a big point I did not mention; now its worse because of derivatives and junk assets. When you were working it was mostly real estate.
  14. CrooksWithoutBorders says:
    @CrooksWithoutBorders “it would tie up”
  15. CrooksWithoutBorders says:
    In the 1980s, I served as a conservator for a $1 billion Texas savings bank. When we got through assessing the losses and liquidating some of the assets that weren’t encumbered by claims the losses totaled $900 million! Many of the assets were cross-collateralized with other lenders. Many of the borrower bankruptcies took forever just to prioritize the claims. If this occurs on a national scale it would up the system up in legal gridelock and liquidity will dry up.
  16. CTOL1 says:
    Bob Dylan’s 115th Dream

    “Now, I didn’t mean to be nosy
    But I went into a bank
    To get some bail for Arab
    And all the boys back in the tank
    They asked me for some collateral
    And I pulled down my pants
    They threw me in the alley” ….

    Just what is collateral?
    Great lyrics, even if one does not like Dylan

  17. JohnPKusumi says:
    Does PayPal have a banking license or charter? How did they get into the business, and do they get to lend or lever customer money?
  18. sgone0 says:
    That is not the crux there is one form for a $600.00 or more cash transaction, another for 10K$’s or more. If more than 10K$ they have up to 48 hours to give you your own money and Federal forms must be submitted in compliance. Oops I thought it was my money?
  19. sgone0 says:
    Interesting; I asked my banker that very question after reviewing their annual statement which does not reflect true collateral. His response was do not worry! Yuck, I responded with that is not satisfactory. He stated that they are required to back their practices by Federal Statute. I requested a cash withdrawal, will that be a cashier’s check? I said no cash will suffice! To which he commented that coincidentally there was not that much cash at the bank due to a Federal Reserve pick up!
  20. JanRichardus says:
    I don’t eat murdered animal meat
  21. wepollock says:
    @bryphi77 Not to mention you have to build houses to code which means they have zero innovation!
  22. bryphi77 says:
    What is your opinion of equal tax free land for all citizens?
    Our forefathers built this country and yet we are still being forced into wage slavery in a service economy for privilege to survive on it.
    As a builder for 10 years of my life I realized fast that I could go into the woods and build my own paradise in a few months. Yet people are being forced to labor for 30+- years for this?
    There is PLENTY of land here for all of us to survive comfortably. Why the need for the serfdom?
  23. UU361 says:
    The FDIC is just another fucking sick ass joke.
  24. curiouscrutiny says:
    the collateral is imaginary or its all of us either way we are screwed

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