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Response to Cali_Democrat (Original post)

Mon Mar 11, 2013, 09:41 PM

6. Original article from LA Times:



In major policy shift, scores of FDIC settlements go unannounced

Since the mortgage meltdown, the FDIC has opted to settle cases while helping banks avoid bad press, rather than trumpeting punitive actions as a deterrent to others.

By E. Scott Reckard, Los Angeles Times

4:05 AM PDT, March 11, 2013

Three years ago, the Federal Deposit Insurance Corp. collected $54 million from Deutsche Bank in a settlement over unsound loans that contributed to a spectacular California bank failure.

The deal might have made big headlines, given that the bad loans contributed to the largest payout in FDIC history, $13 billion. But the government cut a deal with the bank's lawyers to keep it quiet: a "no press release" clause that required the FDIC never to mention the deal "except in response to a specific inquiry."

The FDIC has handled scores of settlements the same way since the mortgage meltdown, a major policy shift from previous crises, when the FDIC trumpeted punitive actions against banks as a deterrent to others.

Since 2007, 471 U.S. banks have failed, nearly depleting the FDIC deposit-insurance fund with $92.5 billion in losses. Rather than sue, the agency has typically preferred to settle for a fraction of the losses while helping the banks avoid bad press.

Read more at link!

For fuck's sake!

Do they pretend the cash from the settlements landed magically in their accounts? Maybe they should launder it through other agencies, or better yet HSBC.

Un-fucking-believable! Non-disclose settlements with criminals!

Hey, market's up for jillionth day in a row. What could ever go wrong again?

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Arrow 12 replies Author Time Post
Cali_Democrat Mar 2013 OP
Laurian Mar 2013 #1
fascisthunter Mar 2013 #2
Jack Rabbit Mar 2013 #3
MichiganVote Mar 2013 #4
silvershadow Mar 2013 #5
LineNew Reply Original article from LA Times:
JackRiddler Mar 2013 #6
OnyxCollie Mar 2013 #7
blkmusclmachine Mar 2013 #8
Roland99 Mar 2013 #9
abelenkpe Mar 2013 #10
Left Coast2020 Mar 2013 #11
JackRiddler Mar 2013 #12
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