Fed bends rules to help two big banks

[opusprime]

Source: CNN

NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out Citigroup (Charts, Fortune 500) and Bank of America (Charts, Fortune 500), according to documents posted Friday on the Fed's web site.

The Aug. 20 letters from the Fed to Citigroup and Bank of America state that the Fed, which regulates large parts of the U.S. financial system, has agreed to exempt both banks from rules that effectively limit the amount of lending that their federally-insured banks can do with their brokerage affiliates. The exemption, which is temporary, means, for example, that Citigroup's Citibank entity can substantially increase funding to Citigroup Global Markets, its brokerage subsidiary. Citigroup and Bank of America requested the exemptions, according to the letters, to provide liquidity to those holding mortgage loans, mortgage-backed securities, and other securities.

snip

The regulations in question effectively limit a bank's funding exposure to an affiliate to 10% of the bank's capital. But the Fed has allowed Citibank and Bank of America to blow through that level. Citigroup and Bank of America are able to lend up to $25 billion apiece under this exemption, according to the Fed. If Citibank used the full amount, "that represents about 30% of Citibank's total regulatory capital, which is no small exemption," says Charlie Peabody, banks analyst at Portales Partners.

So, how serious is this rule-bending? Very. One of the central tenets of banking regulation is that banks with federally insured deposits should never be over-exposed to brokerage subsidiaries; indeed, for decades financial institutions were legally required to keep the two units completely separate. This move by the Fed eats away at the principle.

Read more: http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/?postversion=2007082417

---

You getting this?

The Fed is lending our 2 largest banks up to $50 Billion to support the hedge funds and the brokers who are holding all these bad loans.

This means that if these brokers and hedge funds go under, or if the market takes a turn south, our 2 largest banks could be insolvent.

THIS IS AN EMERGENCY FOLKS!! AND IT BASICALLY MEANS OUR ECONOMY IS ON THE BRINK OF COLLAPSE.

[BlueManDude]

1. Ahhh...the unfettered free market at work.

[Hydra]

5. that term always makes me

:puke:

[ooglymoogly]

75. The Federal Reserve has nothing to do with the Fed or anything remotely

U.S. Federal Government...It is owned by a conglomerate of world bankers who are sucking the world dry with the quicksand of interest and money supply which it allows the U.S. Treasury to print by paying it, the privately owned Fed Reserve interest on pieces of paper with no backing whatsoever.

[Hydra]

91. I've already done the research

but keep telling people- most people don't know that money is worthless.

[Amonester]

40. Yep. Free to fly to Swiss banks, and Caymen banks, and...

Dubai banks?

If the robber barons were not so predictable, it could be funny.

[Hydra]

2. It's bigger than even what you said

Two possibilities are playing out here:

1. Citi and BOA have just gotten a free pass to use the Fed's funny money in substantial amounts- and if they don't go under and loan that line of credit out, expect MASSIVE profits from them- think 10-20% interest + principle of 50 Billion(that didn't exist until the Fed said it did).

2. They are going under, and being propped by the Fed. If this is the case, the carnage is going to spread to ever corner of America when they finally give out. Say hello to The Great Depression 2.0

[opusprime]

11. Agreed.

This could very likely lead to the failure of the whole banking system as the derivatives of these organizations become questionable at best.

From a 10% exposure max to 30% exposure, in one fell swoop.

THATS INSANE!! What could possibly have caused such a situation?

[dickbearton]

22. More of the same criminal deregulation...

The Corrupt Republicans deregulated the economy and now we
will all inherit the wind.

[rateyes]

31. Lending money they don't have...

is what causes it. Money is created by debt in this country. That's insane. And, when the depression comes...it will be these banks CEOs that end up owning the country who bailed them out.

Our money policy is not sustainable. We are starting to see the small cracks get a little bigger. It's going to take a helluva lot of glue to fix it. I don't think we have that much.

[Divine Discontent]

48. you think regular-folk america is gonna let the fat cats enjoy it???

seriously... I don't...

at all.

[rateyes]

52. Well, I wouldn't cry much if those guys

jumped out the windows like they did in '29.

[Divine Discontent]

68. oh, they did? I didn't know that, well I probably did, but I forgot it.. lol n/t

[wordpix]

56. that's right---US has $8.5 trillion debt so what $ is being give to Citi and BOA? Monopoly game $?

Seriously, how can the fed bail out these big stupid banks who took the chance for fast $ and lost with their over-risky loans and should be paying the penalty themselves? The fed gov. does NOT have the $$$.

These fed loans are bailing out some big BushCo contributors and military corporations, IMO with just a hunch. If I were a NYC Wall St. or fed financial reporter, I would look at exactly WHO the $$ is going to, i.e. the people getting the $$ and who they are connected to, and not WHAT--- i.e. Citi and BoA--- the $ is going to.

[ooglymoogly]

79. Um...the Federal Reserve is privately owned and thrives on chaos.

and is usually the instigator of the chaos.

[femrap]

64. That would be

THE GREATER DEPRESSION!

[Deja Q]

3. Don't worry. Offshoring will continue and the global economy will remain safe.

[opusprime]

4. Corporate welfare at its finest.

Its amazing what these guys will do, and how much they will spend to save their fraudulent system.

I just want everyone to be cautious. Dont have more than $100K in any one account, and make sure all your accounts are FDIC protected. Most Money Market accounts are not FDIC insured, you need to check.

[Deja Q]

9. Um

http://www.fool.com/investing/dividends-income/2007/08/24/time-to-dump-the-banks.aspx

The FDIC released its quarterly report, and it paints a bleak picture for the banking industry. In fact, you might want to dump everything financial after reading it, but I think we can still find some value in America's banks.

First, the key numbers for Q2:

* Banks and thrifts set aside $11.4 billion for bad loans, a 75% increase over last year.
* Noncurrent loans increased 10%, with residential mortgage loans accounting for half of the increase.
* Charge-offs of residential mortgage loans increased a whopping 144%.

...snip...

In short, don't panic just yet. Value hounds with long investment horizons should be sniffing around the nation's strongest financial institutions.

http://www.marketoracle.co.uk/Article1915.html

Doesn't FDIC insurance mean that bank deposits are safe now?

FDIC insurance isn't really insurance, it's a pool of money to be used to buy up enough bad loans off the failed bank's books to make it attractive to a potential buyer. It's not used to pay back the depositors .

It only works when bank failures are isolated events, and will not work in a systemic crisis.

The purpose of FDIC insurance is not to really guarantee the safety of the banking system, but to prevent runs on banks by reassuring investors that their accounts are insured. Bank failures, however, are not really an insurable event.

[clixtox]

49. Best to broaden/diversify your assets...

And have tangible, fungible, portable assets that are not US-Dollar denominated, like do not have any more than a minimal amount of necessary cash in the banks in any form. Think precious metals like 24K GOLD or PLATINUM, in your possession, quietly and securely. You may need it someday to feed, protect or transport your loved ones.

You can owe money to a bank but don't have them owe you!

Our whole supposed "prosperity" (I hope that you are enjoying it) is built on an unimaginably huge mountain of debt and nearly as much faith (wishful thinking). There is absolutely bound to be an "end-time" coming, this disastrously out of balance fantasy will self-destruct, sooner or later. The hard part is being able to predict when the facade vanishes and the whole unreal "reality" unravels.

For how much longer will our trading partners world-wide be willing to trade their limited natural resources, their manufactured goods and their agricultural bounty, with us in return for our debased, near worthless US-Dollars. The USA is not producing much domestically besides jets, guns and bombs that anyone else wants to buy, especially at our prices. We owe everybody and when the day of reckoning comes most of the people you know, your family and friends, will have no tangible, valuable assets, nothing except their rage and ignorance. Pay attention!

Flee while you can, if you can't, protect yourself...

[Kelvin Mace]

6. If you or I spend $5 we don't have

the bank calls it an overdraft and charges us $35.

If a bank spends BILLIONS it doesn't have the Federal Reserve bails them out and call it "bending the rules".

[Hydra]

7. You forgot to mention

that when they run out of dollars, they make more out of thin air. I wish I could do that!

[kimmerspixelated]

8. Money is really just an illusion anyway, technically

but it helps when you got a key to the money-printing mint!!!!

[JCMach1]

46. Oh yeah, and there is no M3 money supply report any more so you and I

can't even know HOW MUCH MONEY they are throwing at all the problems right now.

[ChairmanAgnostic]

10. just because some greedy bastards took risks, lost, lost bigger, then

came close to losing biggest, the govt. bails them out. Two days after Bush said that he would NOT support any relief for individual mortgage holders getting screwn by the morans.

[whistle]

12. That's crony fascism for you!

:wtf:

[dickbearton]

25. Quite right.

[flashl]

13. Just Curious

Since BoA was helping out countrywide, doesn’t this mean that countrywide is in bigger trouble?

[opusprime]

14. Countrywide is toast.

They basically gave the store away to BoA.

$2B in convertible debt @ 7.5% strike 18 when the stock is at 24?

This was a desperation deal. Countrywide couldnt go to the Fed window (5.75%) because their assets (loans) are valueless.

Its called death spiral financing.

http://en.wikipedia.org/wiki/Death_spiral_financing

I'll be shocked if CFC makes it to October.

[ChairmanAgnostic]

19. no more ads? YIPPEEEEEEE!

they sold themselves down the river.

[Demeter]

15. Rules? We Don't Need No Steenkin' Rules!

1929, here we come.

[Warren Stupidity]

16. Gee maybe we could have another S&L meltdown

that would be fun. Only instead of hundreds of small regional banks, thanks to the massive consolidation in the banking industry, the overextended house of cards now concerns these huge global banking monsters. Yikers. How much funny money can the FED poof up like this before we are all gazillionaires?

[Connonym]

17. I think we're already over the brink

have you looked at the foreclosure rates and the craptastic home sales? Instead of helping the banks maybe they should freaking do something to help the people suffering from predatory lending practices that started this whole fiasco.

[dickbearton]

27. Methinks we've just begun. Anon.

[wordpix]

57. predatory lending practices & predatory gov under BushCo---all one & the same

[lakercub]

18. great...lets make sure the banks

can get more buried than they already are.

By the by, how come i never see a headline like "Feds bend rules to help lower and middle classes."

Oh wait, I'm just being silly...I know why I never see that.

*sigh* :eyes:

[CGowen]

21. they claim it's "in the public interest"

``The Board believes that a temporary, conditional exemption from'' the regulation would be ``in the public interest,'' the letter said. The letter, signed by Deputy Secretary Robert deV. Frierson, was published on The Wall Street Journal's website and confirmed by David Skidmore, a Fed spokesman in Washington.

http://www.bloomberg.com/apps/news?pid=20601087&sid=auRXBSZHC.3U&refer=home

[lakercub]

24. hehe

And when they claim its in the public's interest...we both know what that means. The middle and lower classes are getting nothing out of this whatsoever, except continued financial headaches.

Reward the banks for their crappy policies the last few years, but watch as those who get screwed the most by the predatory lending schemes get no relief at all.

[wordpix]

58. kind of like, "Houses will begat jobs, jobs will begat houses" ---* on Gulf Coast after Katrina

"And I suspect that what you'll see, Toby, is there will be a momentum, momentum will be gathered. Houses will begat jobs, jobs will begat houses." --George W. Bush, talking to reporters along the hurricane-ravaged Gulf Coast, Gulfport, Miss., Aug. 28, 2006

http://politicalhumor.about.com/library/blbushisms2006.htm

In other words, you cannot believe one friggin thing IQ-challenged pRes Dimwit says or his maladmin. does.

[Sam Ervin jret]

81. Is that English? Spanglish? Piglatin?Bushagish?Just wondering.

[wordpix]

86. That is bushspeak, more bushisms here. Hilarious but not really b/c the pRes can't put a thought to

gether.

http://politicalhumor.about.com/library/blbushisms.htm

[NYC]

20. Recommended.

Very interesting.

[cheddar99]

23. The robbery has already

taken place. The corporate grifter got theirs. The only question is, how much will it cost the rest of us in terms of stagflation, job losses, and dollar devaluation. We must be punished for their crimes, it is the American way!

[dickbearton]

29. K&R.

[NYC]

66. Yes, that seems to be the American way.

Welcome to DU. :hi:

Stagflation:

http://economics.about.com/od/useconomichistory/a/stagflation.htm

From U.S. Department of State
Stagflation in the 1970s

The term "stagflation" -- an economic condition of both continuing inflation and stagnant business activity, together with an increasing unemployment rate -- described the new economic malaise.

Inflation seemed to feed on itself. People began to expect continuous increases in the price of goods, so they bought more. This increased demand pushed up prices, leading to demands for higher wages, which pushed prices higher still in a continuing upward spiral. Labor contracts increasingly came to include automatic cost-of-living clauses, and the government began to peg some payments, such as those for Social Security, to the Consumer Price Index...

...The government's ever-rising need for funds swelled the budget deficit and led to greater government borrowing, which in turn pushed up interest rates and increased costs for businesses and consumers even further. With energy costs and interest rates high, business investment languished and unemployment rose to uncomfortable levels.


...he (Pres. J. Carter) established voluntary wage and price guidelines to control inflation. Both were largely unsuccessful. (NOTE: This is from the gov't.)




A perhaps more successful but less dramatic attack on inflation involved the "deregulation" of numerous industries, including airlines, trucking, and railroads. These industries had been tightly regulated, with government controlling routes and fares. Support for deregulation continued beyond the Carter administration. In the 1980s, the government relaxed controls on bank interest rates and long-distance telephone service, and in the 1990s it moved to ease regulation of local telephone service.

(NOTE: We all know where deregulation has gotten us.)




But the most important element in the war against inflation was the Federal Reserve Board, which clamped down hard on the money supply beginning in 1979. By refusing to supply all the money an inflation-ravaged economy wanted, the Fed caused interest rates to rise. As a result, consumer spending and business borrowing slowed abruptly. The economy soon fell into a deep recession.


(NOTE: Now, they are throwing money at the banks.)

Damned if I know what will come of all this.

Sorry about the "definition" of stagflation that I found.

[cheddar99]

72. Thank you for the

Welcome NYC, it is very nice to be greeted so warmly.

[Lochloosa]

74. Can you handle one more?

:toast:

[Sam Ervin jret]

82. "WIN" Whip Inflation Now" through "deregulation" , What a SUCCESS !!??

[fightthegoodfightnow]

26. YET ANOTHER EXAMPLE OF CORPORATE WELFARE TO COVER THE BAD DECISIONS OF BANKS

So let's recap....mortgage companies made bad lending decisions, but then banks come in to cover their loses by breaking the rules of the feds.

Is any other this starting to smell like .........bad business?

[madamesilverspurs]

28. Just asking,

but wasn't Citibank one of the institutions caught up the Walker/Bush stuff way back when? I seem to remember reading something a couple of years ago about the family retaining significant interest...

[lovuian]

30. those printing presses are going gangbusters

very very ugly

[Greyhound]

32. So how do we get the sheep to see that while they are so concerned about

some impoverished people being "given" a few pennies to keep them alive for another day, our government (both parties BTW) has simply transferred all of the risk to them while the owners reap all of the potential benefits?

Are we, as a people, really too stupid to live?

[Yavin4]

34. When The Sheep Can No Longer Buy Crap At The Mall on Credit

Then, and only then, will they start asking questions.

[Greyhound]

73. If it takes that, it will be far too late. The corporations have ben packing to leave the U.S.

for over 30 years. Once the final shearing is done they are outta here, and we will be left holding an empty bag with a hole in the bottom.

[opusprime]

37. I'll tell you how...

You tell them this is a tax. And it is.

The Fed can inject liquidity, i.e., inflate, at will. And when they do that, they dilute the value of the dollar, thereby increasing the costs of goods.

Simply put, this is a tax on the lower and middle class. As the Fed bails out the banks and corrupt mortgage lenders, the dollar decreases in value, making all our imports (oil) more expensive.

Basically, the Banks and Mortgage companies created a bubble in housing. That inflation value now has to be removed from the monetary system. We can either let the people who made the bad loans eat it, or we can let the tax payers eat it, and let the corporations walk with their profits.

The Fed just said they are going to use tax payer dollars to save the banks and hedge funds. And we are going to pay for it.

[Yavin4]

33. A Debt Driven Consumption Based Economy Is Not Sustainable

You cannot send middle class paying jobs in mfg and IT overseas nor import below market contractors to work jobs in the U.S., and still expect the consumer to carry the load of the economy. It's not going to happen. Sure, in the short term, you can lard up the consumer with debt, sub prime mortgages, HELOCS, credit cards, etc., and it will look like the economy is growing on paper. However, at some point, that debt has to be paid back, often at higher rates of interest, and without a steady supply of middle class paying jobs, you will get a massive economic collapse.

If people don't have decent paying jobs, then they cannot pay their bills. It's that simple.

[HornBuckler]

35. Agreed.

There are many good posts in this thread, yours rings very true.

[DemReadingDU]

36. Exactly.

And a $250,000 mortgage is not an investment. It is a big debt.

[wordpix]

59. and this applies to the $8.5 TRILLION US debt as well as to consumer debt

and economic "growth" based on that debt.

[femrap]

65. Even the CEO of Walfart,

Lee Scott, said his customers are running out of money. So I guess the only thing chugging along in this debt-filled economy is the War Machine and pron.

Way to go, you asshole neocons.

[wordpix]

76. "the only thing chugging along in this debt-filled economy is the War Machine"

How right you are.

[cliss]

38. Now, just imagine this scenario.

The world's most elite bankers are sitting at the table, in the Board Room. Probably London, maybe New York. They are agitated, upset. They realize the entire banking system is a complete hoax. A total house of cards. There is no value there. Only peoples' beliefs that there is value. That's the only thing that keeps the entire system going.

Once that belief (or trust) is gone, the entire scheme goes up in smoke.

Oh my God....what do we do if the public loses confidence? Like the desperate people, standing outside Country Wide Mortgage last week, demanding their money. Because they completely lost faith in the system.

If those people knew, how close they were to knowing the truth....the bankers hyperventilate some more, sweat some more.

The problem, which they rightfully recognize, is that the system is SO fragile right now, the least little crisis could push them over the edge. It appears they've plugged up the dike....

[NYC]

67. Were there any photographs of people lined up outside Countrywide?

I'm curious.

[cliss]

69. Yes, there were photos + an article

over at the Daily Kos.

http://www.dailykos.com/

The thread was posted about 1 week ago. You could always search under 'Countrywide mortgage', 'run on bank' that type of thing.

[NYC]

70. Thanks.

I read news on the internet, don't watch television.

[Sam Ervin jret]

83. I saw that once before. They fixed the windows. You can't jump.

[Scooter24]

39. Hmm...$900 Billion in assets

and they can't even get their operations in order.

[opusprime]

42. Ahh... thats the hitch.

Its $900 Billion when its marked to model.

Nobody in the world will pay marked to model anymore, they will only take marked to market.

Marked to market, many of these securities are worth ZERO... OR LESS. Yup, some will end up being a liability, because they are in foreclosure, and may not be able to be sold, i.e., they drain capital.

That $900 B is make believe. Now show me your earnings report. The PE ratios of some of these financial stocks, like BSC or LEH are going to be increased 10 fold.

[Amonester]

43. If they can't sell any, because there's no buyers (at that price),

then it's not 900 billions.

Besides, methinks the Chinese stopped buying (and the Saudi Royals too...).

And the middle- and lower-class also. Their credit cards are loaded.

So, their a$$ets are over evaluated, to say the least.

Their liabilities may sink them soon.

Perhaps if they could recall a few obscene bonusses and options they already gave away...

[wordpix]

60. "recall a few obscene bonusses and options"---are you kidding? The CEO-CFO geniuses are worth

their millions per yr., esp. while they're "allowing" the wage earner to make $6-10/hr. if he's lucky, by keeping the company in such great shape. :sarcasm: :puke:

[neverforget]

41. Bend the rules for the have-mores while the have-nots get to pay the

bill. Perfectly logical in the evil Bush way.

[opusprime]

45. Nothing to do with Bush really...

This has been going on since 1972, when Nixon took us off the Gold standard, and we used debt, leverage, and inflation to grow our economy.

Not giving macro economic lessons, but think about the boom-bust cycle we have been in since the early 70's. The high interest rates in '79, '80, the crash of 87, the bank crisis in 90, the recession of 91, the Russian currency crisis in 98, the tech boom/crash in 99/2000, 9/11 crash, and the real estate boom.

The real estate boom is the killer. We inflated home values. That means we are eventually going to have to deflate home values. That hurts, and it takes a long time for that pain to go away.

Nothing like living in your home long enough to pay it off, and then selling it at a loss.

[neverforget]

63. I know but it fits rather nicely with helping the big guy and letting the little

guy pay for it.

[1932]

44. Tough love for people. Love love for big banks.

[Corgigal]

47. Is it possible for Citigroup and Bank of America

and probably Chase to all go under? Now I'm not well vested in this economist manner but it appears to me that the people who caused the problems are borrowing more to float this problem longer? Isn't this like using the credit card to buy off other credit card bills? It will work for awhile until that one credit card balance gets too high and then you can't use it anymore.

Am I freaking out, heart racing because I understand this, or because I don't? Damn we owned out home completely until last year when we took out some cash to remodel and put the kids into a private school. I guess this will be proven to be a stupid mistake.

[DemReadingDU]

50. morning kick

[hertopos]

51. This is how it started in Japan in 90's

Japan suffered more than decade long depression. Its economy is still affected by the legacy of that decade.

Well,right now, I am actually hoping that what Fed did will work. Usually, I am against corporate welfare. In this care, unfortunately, the serious deterioration of banking system means serious deterioration of entire economy. Unlike Japan, if U.S. economy fail, the entire world may fail.

If U.S. consumers stop consuming, there will be no more Chinese expansion. Dollar will drop in values significantly. Unfortunately, this actually does not make other country with stronger currency happier. Remember, we consume therefore the world economic expansion exists.

Bush is already a worst president in general. However, he may become someone worse than Hoover in the sense to cause the worst breakdown of world economy.

Sometimes, it helps me to understand what is going on in this country by reading articles in Japan.

Hertopos

[sarcasmo]

53. More Corporate Welfare.

[tanyev]

54. Kick.

[treestar]

55. So I guess they won't mind if I "bend the rules" about paying my

taxes?

:sarcasm:

[wordpix]

61. how about if we "bend the rules" with banks about a rare bounced check?

You won't see them rushing to waive your $35 bounced check fee.

[Sam Ervin jret]

84. or BOA credit card bills?

[wordpix]

62. Citi is very busy this wkend, hiring an Asian bank chief with Citi's illegally borrowed fed funds

http://www.reuters.com/article/coMktNews/idUSSP20881720070825?rpc=11

UPDATE 1-Citi hires Barclays Asia pvt bank chief
Sat Aug 25, 2007 3:47AM EDT

SINGAPORE, Aug 25 (Reuters) - Citigroup's (C.N: Quote, Profile, Research) private banking arm has hired the chief executive of Barclays' (BARC.L: Quote, Profile, Research) private banking in Asia, Nigel Sze, to head its division that advises rich Asian clients on investments.

An internal Citigroup memo seen by Reuters on Saturday said Sze will start as Citi Global Wealth Management Asia-Pacific Investments head on Sept. 7. He will be based in Hong Kong.

The hire marks the latest case of job-hopping in Asia's fast growing but competitive private banking market.

Several new players have jumped into Asia, with an eye on the region's 2.6 million "high net worth individuals" who according to a Merrill Lynch/Capgemini report had $8.4 trillion of assets at at end of 2006.

Many banks are enticing expensive bankers from competitors with higher and higher salaries to help fight more established players like UBS (UBSN.VX: Quote, Profile, Research), HSBC (HSBA.L: Quote, Profile, Research) and Citigroup.

[DuaneBidoux]

71. When the rich banks need help: gov't action! The uninsured child? Well fuck 'em.

[wordpix]

77. that is so heartachingly & making-me-angry true! Speak out, people!

We have got to end this BushCo clusterfuck war making greed corruption evil machine NOW. :grr:

[RUMMYisFROSTED]

78. There's "bending" going on....

...but it ain't the "Fed" doing it.

[ozone_man]

80. More signs of our failing economy.

Inflating the credit balloon even more will only lead to a greater implosion and depression.

[leaninglib]

85. The American economy is NOT on the verge of collapse.

Still "Big Ben," no doubt, has a lot to learn.

[jordi_fanclub]

87. So Citibank stock is at least 30%+interest... over-valuated?

It's simple logic but I'm sure they can cook some "good" and colorfool explanation!

[wordpix]

90. Citi's stock went down with revelation it might be $3 Billion in hole w/loans, then stock went up

Except for the one day Dow decline over 400 pts., Citi's stock price has been rising since the $3 billion estimated loss first appeared in print. Go figure. :wtf:

:crazy:

[coyote]

88. This is the biggest financial story since the stock market decline in 1929.

This is exactly the kind of thing Glass-Steagall was passed to prevent, the same thing which caused so many banks to go under in '29/30 - using depositor accounts to prop up losses in the brokerage arm of the bank, or other banks/Funds/specs.

[DemReadingDU]

89. morning kick

[NYC]

92. Evening kick.

This thread should stay visible.

[cosmicdot]

93. next day kick

[NotGivingUp]

94. k & tried to r...too late. i don't know what else to say except i feel sick. n/t

[0rganism]

95. Nanny-state socialism for the ultra-rich, laizzes faire capitalism for the rest of us

Free market? my ass it is. More like a taxpayer-supported flea market.

Meanwhile, we can't seem to bail out any of the folks losing their homes to foreclosure, or provide medical coverage to the nation's poor children. Funny how that works. :crazy: