FDIC takes over 1st National Bank of Nevada

"Twenty-eight branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators."

So what happened to cause the banks to fail? Poor lending practices again? What happened to the CEO and management staff of the banks? Will they remain with Mutual of Omaha? Are we the taxpayers footing the bill for this one too? This news item doesn't provide very much detail. Congress needs to get on the ball and draft stringent legislation (huge fines, jail time, personal property confiscation) for these incompetent CEOs.

Don't worry everyone, everything is fine. Really, we have everything under control. Really. Dont even think about it. No worries, lts all good. really.... really good. ok?

Paulson appears on Face The Nation and says "Our banking system is a safe and a sound one." If the banking system was safe and sound, everyone would know it (or at least think it). There would be no need to say it.

Paulson says the list of troubled banks "is a very manageable situation". The reality is there are 90 banks on the list of problem banks. Indymac was not one of them until a month before it collapsed. How many other banks will magically appear on the list a month before they collapse?

There is roughly $6.84 Trillion in bank deposits. $2.60 Trillion of that is uninsured. There is only $53 billion in FDIC insurance to cover $6.84 Trillion in bank deposits. Indymac will eat up roughly $8 billion of that.

Of the $6.84 Trillion in bank deposits, the total cash on hand at banks is a mere $273.7 Billion. Where is the rest of the loot? The answer is in off balance sheet SIVs, imploding commercial real estate deals, Alt-A liar loans, Fannie Mae and Freddie Mac bonds, toggle bonds where debt is amazingly paid back with more debt, and all sorts of other silly (and arguably fraudulent) financial wizardry schemes that have bank and brokerage firms leveraged at 30-1 or more. Those loans cannot be paid back.

What cannot be paid back will be defaulted on. If you did not know it before, you do now. The entire US banking system is insolvent.

http://globaleconomicanalysis.blogspot.com

Remember the S&L savings failures in the early 70's. Neil Bushs' Silverado Savings and Loan was the first one to go under. History repeats itself because no one listens the first time.

The beginning of the second great depression. Thank you George Bush.

Paulson is nothing but a lier and wall street bail outter. Greed is what is driving this great country into the ground even deeper.

Paulson stop your damn lieing and tell us "We The People" the damn truth for once in your looting greedy stealing life. Stop being a crook and do the right thing.

You'd think that after all the extra fees banks charge, they would never have to look for money.

Reading the story that led me here is interesting in the fact that it states there are 90 banks under scrutiny at present then it does not give you a link to the list. Few years back a friend of mine that works for a local mortgage company called me and asked me if I wanted to buy a house. I said no way. He kept p[estering me and I told him to run my credit and see if I qualified. Sure enough I did for up to a quarter million dollars. I asked him how that was possible because all I gave him were assets that included only my retirement checks. I asked how much I needed to put down on a house in that range and he told me zero! I balked because I knew this was one of those escalating loans and I do not talk to him any more. I feel sorry for all of those people who thought they had a piece of the pie and now face foreclosure. I feel sorry for those people who are worried about their saving and the tax payer money that will be spent bailing out some of these banks while their executive retire to their million dollar homesteads and retire unscathed. They had to know this was gonna happen. The FED the administration and in some ways congress all failed us.

All I would like to know is how do I get the FDIC, or any govt. dept. to take ME over, and make me solvent again? Laid off from a good job 15 months ago, can't find ANY kind of work, and believe me, I'm insolvent.
Billions for all kinds of things from this f'n Bush administration, except, REAL help for it's own life long, born and raised here, 35 years of paying taxes ciitizens. Bush should be ..........(please fill in your own evil thoughts of what to do with this drunken cocaine cowboy @!$%#).

You are correct Bush alone could not have done it with out the help from the house that was controlled by the republicans for 6 year of the last 7 years, not to mention help from the likes of Gramm that was accomplished "under the table"

People are going to begin to fear Fridays, the day of the week when the Feds take over banks. That deafening sound you hear is our insolvent banking system coming crashing down. If you don't believe me, google BOGNONBR. The graph you will see is not a projection, it is actual past data. In November of 2007 our banks fell off a cliff. The lost billions of dollars of everyones hard earned money. The banks are only being propped up by smoke and mirrors and accounting games. What this means for you individually is this: take a look at your monthly bank statement or view your account on line. See those numbers? They are nothing more than ink on paper or dots on your computer screen---there is no real hard cash behind those numbers, at least not the full amount. The Feds have said do not expect failures the size of IndyMac. Really? IndyMac was the second largest bank failure in history and it wasn't even on the FDIC "watch list"--let me repeat that: we just had the second largest bank failure in history and the FDIC didn't even see it coming! Why should they be believed now when their radar hasn't been working? How long before the FDIC's 50 something billion runs out? Wa Mu alone is enough to wipe the fund out. Who wants to get in that line of people clamoring for their money? Got gold? Got a large mattress? And more importantly, got Jesus? Only in Jesus will you find refuge from the catastrophies overtaking the earth--be it the fires, floods, earthquakes, or financial collapse.

Deregulation and outsourcing will be the downfall of this country just because the power elites want corporations with a global economy. ALL LIES ON THE COMMON MAN!!

PULL YOUR MONEY OUT OF EVERY BANK, EVERY PENNY OR RISK LOSING IT - PERIOD.
THIS MESS WAS CREATED BY DESIGN, IT JUST WAS NT THOUGHT IT WOULD GO THIS BAD SO QUICKLY. THE CREATOR - THE VERY GOVERNMENT THAT "YOU" VOTED IN AND WHO WAS AHEAD OF THE CREATION " ALLEN GREENSPAN" AND WHERE IS HE NOW, RETIRED WITH A HUGE RETIREMENT PACKAGE LOVING LIFE! YOUR MONEY PAID FOR HIS NEW LIFE, THANK YOU SUCKERS! YOU JUST DON'T GET IT AMERICA. THE PARTY'S OVER BUT YOU KEEP VOTING BASED ON PARTY LINES INSTEAD OF WHATS IN THE BEST INTEREST OF WE THE PEOPLE "AMERICA". THERE ARE GOOD PEOPLE IN CONGRESS THAT CARE ABOUT THE PEOPLE BUT YOU CHOSE NOT TO LISTEN TO THEM, YOU FELT
THEIR IDEAS ON WHAT NEEDS TO BE DONE TO GET THIS COUNTRY BACK ON A STABLE COURSE WAS WAY FAR TO THE RIGHT OR WAY FAR TO THE LEFT AND EVEN WAY FAR OUT IN SPACE, PEOPLE LIKE "RON PAUL" ROMNEY EXTC. BUT THE REALITY IS THEY WERE "RIGHT ON". THEY EVEN TOLD YOU WHAT WAS GOING TO HAPPEN AND LOW AND BEHOLD HERE IT IS - IT'S HAPPENING BEFORE YOUR CLOSED EYES AND CLOSED EARS PARTY GOERS ARE YOU ENJOYING THE PARTY NOW? GET OFF YOU LAZY BUTTS, GET AWAY FROM THE TV, FIND THESE PEOPLE AND GET BEHIND THEM, THERE IS STILL TIME TO FORCE REAL CHANGE "OR ITS GOING TO GET REALLY BAD" AND THE ITS TO LATE. HISTORY DOES REPEAT ITSELF. THE FALL OF ROME - THE FALL OF THE US OF A. NOW GO DO WHAT IS RIGHT!

PULL YOUR MONEY OUT OF EVERY BANK, EVERY PENNY OR RISK LOSING IT - PERIOD.
THIS MESS WAS CREATED BY DESIGN, IT JUST WAS NT THOUGHT IT WOULD GO THIS BAD SO QUICKLY. THE CREATOR - THE VERY GOVERNMENT THAT "YOU" VOTED IN AND WHO WAS AHEAD OF THE CREATION " ALLEN GREENSPAN" AND WHERE IS HE NOW, RETIRED WITH A HUGE RETIREMENT PACKAGE LOVING LIFE! YOUR MONEY PAID FOR HIS NEW LIFE, THANK YOU SUCKERS! YOU JUST DON'T GET IT AMERICA. THE PARTY'S OVER BUT YOU KEEP VOTING BASED ON PARTY LINES INSTEAD OF WHATS IN THE BEST INTEREST OF WE THE PEOPLE "AMERICA". THERE ARE GOOD PEOPLE IN CONGRESS THAT CARE ABOUT THE PEOPLE BUT YOU CHOSE NOT TO LISTEN TO THEM, YOU FELT
THEIR IDEAS ON WHAT NEEDS TO BE DONE TO GET THIS COUNTRY BACK ON A STABLE COURSE WAS WAY FAR TO THE RIGHT OR WAY FAR TO THE LEFT AND EVEN WAY FAR OUT IN SPACE, PEOPLE LIKE "RON PAUL" ROMNEY EXTC. BUT THE REALITY IS THEY WERE "RIGHT ON". THEY EVEN TOLD YOU WHAT WAS GOING TO HAPPEN AND LOW AND BEHOLD HERE IT IS - IT'S HAPPENING BEFORE YOUR CLOSED EYES AND CLOSED EARS PARTY GOERS ARE YOU ENJOYING THE PARTY NOW? GET OFF YOU LAZY BUTTS, GET AWAY FROM THE TV, FIND THESE PEOPLE AND GET BEHIND THEM, THERE IS STILL TIME TO FORCE REAL CHANGE "OR ITS GOING TO GET REALLY BAD" AND THE ITS TO LATE. HISTORY DOES REPEAT ITSELF. THE FALL OF ROME - THE FALL OF THE US OF A. NOW GO DO WHAT IS RIGHT!

Feds are doing too little too late. Politicians have not come to terms yet with struggling families who try to keep their homes and this is not the time for keeping on blaming people for getting into financing "scams" the Feds let bankers do. (yes, they knew it was a "bubble", they knew what was happening and they let it be.)
Now that banks are going down the drain the life rafter is going to the scammers and not to the victims. If the Feds get people out of trouble, banks will surely have the pressure alleviated upon themselves. Condone part of the debts and make offers to adjust mortgages to risky borrowers (must of us.)
If our mighty government would have spent all those billions on the borrower's case this problem would have been resolved long time ago! No brains required to know this...

Political parties and lobbyists should be banded from the earth. All of congress should be mandated to use a web site to report their vote on every piece of legislation and why they voted for or against. Our government is being run by mult-national corporations with greed and world domination as their objective. America is just a stepping stone for them.

The bank CEOs and Board of Director need to forfeit every cent they have made and it put back into the deposits, along with those in upper management and they need to spend time in jail. It is their choices to be greedy that has helped bring on this recession. I think also that all politicians that received donations from these banks need to come clean showing they received the donations and how they voted on laws, etc. affecting these people and then charged with aiding and abetting criminals and sent to jail with them.

What I find to be particularly disturbing is that they put Bernie Ebbers and crew from MCI and the boys from enron in jail but haven't done anything about the losers who started the latest charade. When Bill Uffelman says its a "poor Economy" as an excuse someone should kick his butt. What a moron, the economy is partially in its state because of morons mismanaging funds and assets that didn't belong to them. When is someone from the government going to start passing out the sentences and hold people accountable?

I still say after living through the 70's debacle that no one learned from, that every person who ever applies for a home loan should have to go through a course on financing. Then we wouldn't be in this mess yet again. If people chose these loans then that is their fault for not being educated enough before they chose this path.

If one is chosen for a Habitat For Humanity home they must take a course on financing and budgeting, why should we not require this for others. Especially since those of us that know better are now going to have to pay for it one way or the other. we did in the past and we will in the future, the only thing that will change is the faces.

Excuse me! Age-wise I am an antique. Internet-wise I am a baby. So I have two questions. First, how do I get back here? Oh - I'll try, but I'd hate to have someone go to the trouble of answering my question and my never being smart enough to get back here and LEARN. Ergo, maybe it ain't proper procedure, but I'm stupid enough to be dumbly brave - post an answer (because someone else MIGHT be interested in the question and answer) AND - freely given - send me a direct answer at bergersonlantz@ndsupernet.com. My second question: I don't have anywhere near enough money to worry about exceeding the FDIC covered limit of $100,000 (unless my $2/wk voluntary tax-on-the-ignorant lottery ticket comes through - a small affordable price to dream) BUT - ain't there ways to increase the FDIC coverage? There used to be, 35+ years ago when I was a banker, but maybe those loopholes have changed. And I don't remember them, because I didn't need to - I was barely scrimping by. IF I won the lottery - okay I'd buy a $100,000 CD in my name, and one in my wife's. $200,000 is insured per bank - right? If I purchased another 6 CDs in my name and my kids (and stepkids) names with my SSAN (for tax purposes) and my wife did the same (with her SSAN) - of the $1,400,000 in one bank - how much would be 100% FDIC insured? Shucks, it really doesn't matter, I don't expect to be super lucky, just curious because I like to dream and (other than the fact it probably ain't gonna happen) I'd like to have my dreams and dreamy calculations have some basis in actuality. When I day-dream, I can ignore the fact that the world is going to hell in a scratching, leaky handbasket. Nah, I'm not interested in any money-making schemes, ain't got enough money to be interested in investment advice, just got these dumb-ass dreaming questions. Thanks!

Last time I checked being stupid or taking to much risk are not illegal. Both the lenders and the borrowers who made bad decisions are now paying the price. Unfortunately some who did neither are getting caught up in the housing crisis and are being negatively impacted.

If there is any good news to look forward to it is that these crazy loans stopped over a year ago. It is estimated that mortgage resets will peak in Sept. Foreclosures should max out about 6 months later. If we are able to avoid the technical definition of a recession it will only happen because of the global economy which is still keeping our exports strong. But for those impacted, technical definitions don't matter.

As with all downturns, there will continue to be bank and other business failures. Our politicians will promise much, and deliver little. But at some point the housing market will bottom and the economy will recover. For some reason we are always too pessimistic during economic downturns and too optomistic during the good times. Economic cycles run about every 7-10 years. You would think we and our legislators would learn and plan ahead for the inevitable downturns.

If FDIC has a "watch list" of banks that they are watching as of the 1st Quarter, why doesn't MSNBC publish that list for us?? I sure would like to know what banks are on that list.

If FDIC has a "watch list" of 90 banks as of the end of the 1st Quarter, why doesn't MSNBC post the list of those banks for us on this web-site. I would really like to know what banks are on that WATCH LIST...

Gee, it seems the last time a bunch of banks got into trouble like this, John McCain was shoveling the loot into his campain war chest, and Neal Bush was striking out on his own business ventures.

Even the locations of the banks are strikingly similar

It looks like some things never change

hey folks! this FDIC insurance who runs it? our government! and they are broke! so now you are going to tell me us little people that don't have over 100,00 in the bank won't loose our money? get real america! how stupid can you all be! these checks we got from mr. bush was a loan from china! hello!!!!!!! that's my money comes out on monday! i'm not going to be in those lines of getting my money when they all fail!