You Have No Clue How Bad Bank Balance Sheets Really Are

"That the FDIC had to raise its estimate for coming losses to $100 billion makes it plenty clear that the state of American banking is far from healthy. But what's scary is not the eye-popping number, it's the lack of insight anyone has into bank balance sheets."

http://www.businessinsider.com/you-have-no-clue-how-bad-bank-balance-sheets-really-are-2009-10


What is scary is that this well known secret is fast becoming NOT a secret.

for more detail, see this:

http://www.bloomberg.com/apps/news?pid=20601039&sid=aHU4bso2L2aE

they've plied them with lots of free cash and looked the other way while they did their worst.

The problem has not been fixed because of this, hence there can be no real 'recovery'.

And, as Deninnger points out today....

"One can argue that people are being "optimistic" in a vacuum with single instances, but when you keep seeing bank failure after bank failure - nearly 100 of them now - where balance sheets are universally overvaluing claimed "assets" .vs. their disposition value at some point you have to call this what it is: a pattern of intentional conduct designed to deceive regulators and the public as to the condition of these institutions.

And that folks, is not a mistake.

It is, in my opinion, a criminal offense, and one that every member of the board of these banks, along with their auditors, should be answering for."

http://market-ticker.denninger.net/archives/P1.html

we certainly didn't do it when the Financials brought the country to the brink of ruin -- and i fear we are so far into the Banksters that the same will be true again.

acquiescence of the Fed, Treasury and the Whitehouse. It's my opinion that everyone knows what is going on, they know most of the biggest banks and a ton of medium and smaller banks are insolvent. My guess is they feel they have no choice but to look the other way hoping that the market will return on these over valued assets and that the banking system will emerge intact. I think they are fools. Allowing this subterfuge to continue only guarantees that the collapse when it comes will be worse and the recovery will take longer.

The first step is facing up to the fact that the banking and finance cartel owns our federal government. The second step is figuring out how to force change in this area.

mistake on the part of the Treasury and Federal Reserve. The bailout has made it impossible to fund a reformed banking system.

They'd rather take the risk of destroying the system than allow real change.

Financial Vietnam, by those wonderful people who brought you the Iraq War and the Wall Street Meltdown.

and pretty much everything the banks and the Fed and the Treasury do confirms it.

That's why they won't answer any important questions.

Insolvency shmolvency. Those bankers have stolen their bonuses from the taxpayer fair and square. Hell, even Obama has said that it would be unfair to limit banksters salaries.

http://banktracker.investigativereportingworkshop.org/banks/

Hit the above website..........Chose a bank, and take the troubled asset # and double it (or the ratio). That's what the FDIC is having to write off in losses on the banks they are actually shutting down. I've run every closure for the last month, and the 50% rule (or greater) has rung true in every one. It's called actually "marking to market"

If the same is true across the board..there may be 400 healthy banks...instead of vice-verse

Credit Unions are "by far" in much better shape..Say "phuck U" to the big banks...There are not needed, nor are there rip-off card rates

I went to check out a local bank on the banktracker site, and their troubled asset ratio in June of 2008 was 42.1 In June of 2009, their TAR was 150.8

You say "50% rule" ... troubled asset ratio of over 50%???

What's your prognostication?

Another one, it a different town, had a TAR of 21.1 in June of 2008, and a TAR of 70.9 in June of 2009.

What I mean is that the FDIC write-off has been consistently 50% or MUCH higher than the reported TA on institutions that they have actually closed.

What I found is that the figure the FDIC used as the expected cost to the fund was at least 50% higher than what the banks showed on their books as TA's. In other words they were grossly over-valuing their assets

If the practice is widespread, then there are a lot more zombie institutions than being reported. The bank that u looked up with a TA of 150% should be shut down.

Warren Bank was just shut (today)...it listed troubled assets of $88mil...the FDIC says it will write off $275Mil. 50% was being very, very cautious......(a bullet proof accusation)

Hmmmmm $88mil claimed vs. $275mil actual...........I want my blanky:scared:

would they be wise to move their assets out of the country? I'm really concerned about the dollar completely crashing.

The dollar will ramp up during the next market decline. The dollar will be fine, for awhile.
Edit. I'm not an adviser, read and research what others believe, then make your own decision.