Please DON’T Save Us
Over the past several days, all you hear about on the news is this whole phenomenon surrounding failing banks and financial institutions in the wake of the “mortgage crisis.” This is my plea to the US government to allow these institutions to fail. Do not intervene. Allow the robber barrons and Mr. Potters behind the sub-prime mortgage lending and speculation to learn their lesson. If you engage in high risk activity, don’t expect to come out unscathed.
I know many people will be hurt by the failing Indymac bank, and will be subject to the maximum value the FDIC will reimburse. However, I think even more people will be hurt if these institutions are propped and allowed to conduct business as usual.
Here are some laughable quotes from Indymac Bank CEO John Bovenzi in a statement he gave on July 13th concerning the closure of his bank:
As you know, on Friday, Indymac Bank was closed and the FDIC was appointed as receiver. What that means is that over the weekend, we have been working to reopen the bank first thing Monday morning. This action, on Friday was taken to protect depositors.
That’s a bunch of baloney. Running this statement through my malarky translator it reads, “This action was taken so that you don’t strip all of our reserves. We’d rather the federal government front the bill for your accounts.”
Our objective is to protect the bank’s value and return it to the private sector, which we plan to do in the upcoming months. Indymac Federal Bank now has the complete support of the FDIC. It is a strong and safe institution.
Completely laughable. Indymac Bank is a strong and safe institution eh? Why the hell did you have to forfeit control over to a governmental entity? This guy is definitely a CEO, he thinks his excrement does not smell. I wonder what his golden-parachute looks like. This guy sounds like a jumper.
A Fannie Mae and Freddie Mac bailout is currently being worked on in Congress. Being the two largest mortgage-finance companies in the US, this bailout due to the subprime-mortgage disaster could end up being the largest boondoggles in US history.
One has to wonder, why hasn’t anyone been brought up on charges for the sub-prime mortgage crisis? Why are there no witch-hunts? You mean to tell me Martha Stewart had to decorate a concrete cell, and we have thousands of people without homes, while many of these mortgage brokers are sitting pretty? Take note, the bankers really do run this nation, not the empty suits in Washington DC.
The Baer Sterns bailout set a bad precident. Expect your bank executives to be just fine, while the account holders lose their savings and their homes.
on July 17th, 2008 at 8:49 am
disaster capitalism faintly creeping into blatant fascism. If I had more than a hundred grand in any banking institution I would be withdrawing it ASAP! Luckily I am one of the poor working schmucks.
on July 18th, 2008 at 7:25 am
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on July 21st, 2008 at 3:24 pm
And the lenders keep right on handing out sub-prime mortgages. I know of a family who just got approved for a new mortgage, and they’ve had foreclosure papers in hand within the last year or so. How on earth can they be considered a good credit risk? These lenders deserve to reap what they’ve sown, and I really have little interest in seeing them get bailed out with taxpayer dollars.
on July 21st, 2008 at 6:42 pm
I agree 100%!
The federal money to bail out those failed institutions will be used first to fund “Golden Parachutes” for the senior managers who took such risks with their depositors’ money. Let the institutions go under but pay off the depositors. Once the bank is in bankruptcy court, the judge will stop the golden parachute nonsense. But as long as the bank is a “going concern” they will feel “compelled” to honor their employment contracts (sob!) and pay vast sums to the very people who risked nothing and now stand to gain everything.
Let ‘em fail!