FW: FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank
Rebuttal from FDIC from TBSW’s blog about their relationship with OneWest (see below)
Maybe Sheila doesn’t need to be chastised after all.
Sorry Sheila I thought the boys at TBSW had their facts right.
-sunil
Press Release
FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank
| February 12, 2010 |
FDIC Director of Public Affairs Andrew Gray said, "It is unfortunate but necessary to respond to blatantly false claims in a web video that is being circulated about the loss-sharing agreement between the FDIC and OneWest Bank. Here are the facts: OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets. In order to be paid through loss share, OneWest must have adhered to the Home Affordable Modification Program (HAMP).
The producers of this video perpetuate other falsehoods. The FDIC has not requested to borrow money from the Treasury Department. Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video.
This video has no credibility. Regardless of the personal or professional motivations behind its production, there is always a responsibility to be factually correct and transparent. The FDIC made available a fact sheet on the day that the sale of IndyMac was announced that details the terms of the contract. It's too bad that the creators of this video opted to premise it on falsehoods."
Comments
There is no bank failure this week.
Really?
Or is it because the FDIC is not doing its job so it does not need to go to Congress for that taxpayer money???
The FDIC ended Q3 2009 with -$8 billion and it now has a $500 billion credit line from Congress. It didn't collect premiums for years. This insolvent insurance corporation's most important mandate is deposit protection. Yet when it has no money to close zombie banks, like it is supposed to do when these banks become insolvent, it is backing over $300 billion of bank bonds via TLGP for Goldman Sachs, etc at the expense of the safety of trillions of our deposits.
But it argues that TLGP is actually a moneymaker from the fees it collects. Now do you think GMAC should not have failed? Of course it should have. But the FDIC will allow this bank to issue more bonds under unlimited amount of implicit tax dollar guarantee while pushing the "guarantee part" down the road for your kids to pay should things go sour. It tells you now that its bond guarantee program has not cost the insurance agency or you a single penny.
Besides an insurer, the FDIC is also a federal regulator for Class NM banks. The Office of Inspector General has already released several reports criticizing poor supervision among OCC, OTS, the Fed, and the FDIC. The FDIC also failed to follow Prompt Corrective Action, which would have minimized losses to the insurance fund.
"U.S. Bank Examiners Faulted for Oversight at Failed Lenders"
http://www.bloomberg.com/apps/news?pid=20601087&sid=aFb4U0YZ49PQ&pos=7
"Treasury, FDIC And More: How Many Lies?"
http://market-ticker.denninger.net/archives/1336-Treasury,-FDIC-And-More-How-Many-Lies.html
"‘No-Risk’ Insurance at F.D.I.C."
http://www.nytimes.com/2009/04/07/business/07sorkin.html?partner=rss&emc=rss
"The Subsidy That Won't Die
The big banks claim the government isn't helping them anymore. Not exactly. Check out this little-known subsidy."
http://www.newsweek.com/id/230530
"FDIC Responds To IndyMac/OneWest Video Alleging Sheila Bair Transferred Billions In Taxpayer Funds To Paulson & Co., And Others"
http://www.zerohedge.com/article/fdic-responds-indymaconewest-video-alleging-sheila-bair-transferred-billions-taxpayer-funds-#comment-229599
*imho*