On Friday, the FDIC closed 5 banks with an estimated $334.7 million hit to the Deposit Insurance Fund. Year to date, the FDIC has closed 108 banks.
Recap of weekly bank closings for the month of July:7/30/10 5 banks closed and DIF hit of $334.7 million
7/23/10 7 banks closed and DIF hit of $431 million
7/16/10 6 banks closed and a DIF hit of $334.8 million
7/9/10 4 banks closed and a DIF hit of $159.9 million
7/2/10 NO BANKS CLOSED (FDIC Holiday Weekend)
Courtesy of the Financial Accounting Standards Board (FASB) changes to "portfolio valuation", the banks continue their "Puff N Stuff" mark-to-model asset valuation (a.k.a. fraud).
Please allow grandpa to refresh your memory regarding the congressional "influence" on FASB:
June 26th, 2009 (Marketwatch): "I've testified maybe 20 times on the Hill and lawmakers and other policy makers here have a natural interest and responsibility to understand what we're doing," said FASB Chairman Robert Herz at the National Press Club in Washington. "I don't particularly welcome when people try to exert political pressure on us to get us to change accounting rules."
Key lawmakers, including a subcommittee chairman, Paul Kanjorski, D-Penn., said they would consider introducing legislation to make FASB make the changes if the agency didn't do it on its own. They demanded that FASB provide flexibility within three weeks.
March 30 (Bloomberg) -- Four days after U.S. lawmakers berated Financial Accounting Standards Board Chairman Robert Herz and threatened to take rulemaking out of his hands, FASB proposed an overhaul of fair-value accounting that may improve profits at banks such as Citigroup Inc. by more than 20 percent.
The changes proposed on March 16 to fair-value, also known as mark-to-market accounting, would allow companies to use “significant judgment” in valuing assets and reduce the amount of writedowns they must take on so-called impaired investments, including mortgage-backed securities. A final vote on the resolutions, which would apply to first-quarter financial statements, is scheduled for April 2.
The political action committees of banks including Citigroup, Bank of America, Bank of New York Mellon, Wells Fargo and banking trade groups contributed money to Kanjorski’s re- election campaign last year, according to the Federal Election Commission. Citigroup gave $6,500, Bank of America $7,000, Bank of New York $8,000 and Wells Fargo $13,000.
Puff N Stuff South Carolina SytleWoodlands Bank, Bluffton, South Carolina was closed by the FDIC on Friday and could be one the Poster Banks for mark-to-model. Woodlands Bank listed assets of $376.2 million and total deposits of $355.3 million. The FDIC estimates a hit to the DIF of $115 million. This would imply "REAL" assets of $240 million versus $376.2 million yielding a "Puff N Stuff" over statment of assest by 57%.
This is similar to one's child telling you they received an A- semester grade and during parent teacher conferences, the mark-to-market grade was a solid C+.
Thank you Paul Kanjorski for your stellar "integrity" role modeling on behalf of all children and grandchildren.