Libertatis Æquilibritas

FDIC may borrow money from Treasury
Wednesday August 27, 2:43 am ET

(Reuters) - Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported.

The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said.

The borrowed money would be repaid once the assets of that failed bank are sold.

"I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses," Chairman Sheila Bair said in an interview with the paper.

Bair said such a scenario was unlikely in the "near term." With a rise in the number of troubled banks, the FDIC's Deposit Insurance Fund used to repay insured deposits at failed banks has been drained.

In a bid to replenish the $45.2 billion fund, Bair had said on Tuesday that the FDIC will consider a plan in October to raise the premium rates banks pay into the fund, a move that will further squeeze the industry.

The agency also plans to charge banks that engage in risky lending practices significantly higher premiums than other U.S. banks, Bair said.

The last time the FDIC had borrowed funds from the Treasury was at nearly the tail end of the savings-and-loan crisis in the early 1990s after thousands of banks were shuttered.

The fact that the agency is considering the option again, after the collapse of just nine banks this year, illustrates the concern among Washington regulators about the weakness of the U.S. banking system in the wake of the credit crisis, the Journal said.

(Reporting by Sweta Singh in Bangalore; Editing by Erica Billingham)

Current Mood: nauseated

Syron yesterday defended his loan decisions, arguing that Freddie needed to take additional risk to meet its government mandate to provide affordable housing. Although a private company, Freddie Mac was created by Congress to expand mortgage credit and home ownership.

"If you're going to take aid to low-income families seriously, then you're going to make riskier loans," Syron said in an interview yesterday. "We have goals to meet."

• On June 30, 2008, First National Bank of Arizona, merged with First National of Nevada because it was failing.
• On July 23, 2008 Arizona's second-largest credit union, said it lost $42.5 million over the first half of 2008.
• On July 25, 2008, First National of Nevada fails and Mutual of Omaha Bank, Omaha, Nebraska has agreed to assume all deposits.

Current Mood: discontent

"Men cannot be governed and remain men. Domesticate the wolf and he changes both physically and mentally. His muzzle shrinks, his teeth diminish, he loses size, speed, and strength, He grows spots. His ears flop. His brain withers. He becomes a dog. Men are on the verge of becoming dogs -- the changes are underway already -- unless we do something to stop it." -- The Ceo Lia Wheeler, Phoebus Krumm

The ACLU interprets the Second Amendment as a collective right. Therefore, we disagree with the Supreme Court’s decision in D.C. v. Heller. While the decision is a significant and historic reinterpretation of the right to keep and bear arms, the decision leaves many important questions unanswered that will have to be resolved in future litigation, including what regulations are permissible, and which weapons are embraced by the Second Amendment right that the Court has now recognized.

"What scares you the most ACLU? That individuals have the right to own weapons to protect their lives from life threatening offenses? Or the fact that your "collective" stance means that whatever your agenda was, you can no longer arbitrarily proceed with it without the justified threat of getting a .45 ACP in the chest?

To deny human beings the individual right to self-defense is the same as condoning slavery. I find the ACLU's position on the Heller decision quite disturbing in the least, especially considering how hard they have worked to undo the "Master" and "Slave" relationships in the 20th Century.

It's quite obvious the ACLU is in fear of losing money from its large benefactors should it support the Heller decision, or even that these very benefactors make policy decisions for the group.

I find the hypocrisy going on here quite grotesque. It seems that according to the ACLU, slavery should still exist in the United States, just under your own terms.

Its refreshing that you've finally shown the public the true face of your organization."

Current Mood: indescribable

"Like most rights, the Second Amendment right is not unlimited. It is not a right to keep and carry any weapon whatsoever in any manner whatsoever and for whatever purpose: For example, concealed weapons prohibitions have been upheld under the Amendment or state analogues. The Court’s opinion should not be taken to cast doubt on longstanding prohibitions on the possession of firearms by felons and the mentally ill, or laws forbidding the carrying of firearms in sensitive places such as schools and government buildings, or laws imposing conditions and qualifications on the commercial sale of arms. Miller’s holding that the sorts of weapons protected are those “in common use at the time” finds support in the historical tradition of prohibiting the carrying of dangerous and unusual weapons. Pp. 54–56.

The handgun ban and the trigger-lock requirement (as applied to self-defense) violate the Second Amendment. The District’s total ban on handgun possession in the home amounts to a prohibition on an entire class of “arms” that Americans overwhelmingly choose for the lawful purpose of self-defense. Under any of the standards of scrutiny the Court has applied to enumerated constitutional rights, this prohibition—in the place where the importance of the lawful defense of self, family, and property is most acute—would fail constitutional muster. Similarly, the requirement that any lawful firearm in the home be disassembled or bound by a trigger lock makes it impossible for citizens to use arms for the core lawful purpose of self-defense and is hence unconstitutional. Because Heller conceded at oral argument that the D. C. licensing law is permissible if it is not enforced arbitrarily and capriciously, the Court assumes that a license will satisfy his prayer for relief and does not address the licensing requirement. Assuming he is not disqualified from exercising Second Amendment rights, the District must permit Heller to register his handgun and must issue him a license to carry it in the home. Pp. 56–64."

Current Mood: contemplative

• Nationwide, 649,917 homes received at least one foreclosure-related filing in the first three months of the year.
• This is an increase of 23 percent from the fourth quarter of last year.
• One in every 194 households received a foreclosure filing during the quarter.
• Nearly 503,000 homeowners had received mortgage aid in the first quarter.
• Nevada posted the worst foreclosure rate in the nation, with one in every 54 households receiving a foreclosure-related notice.
• Arizona had the third-highest foreclosure rate, with one in every 95 households reporting a foreclosure filing in the quarter. A total of 27,404 homes reported at least one filing, up nearly 245 percent from a year ago and up 45 percent from the last quarter of 2007.
• Nearly 157,000 properties were repossessed by lenders nationwide during the quarter.

Current Mood: contemplative