Academic

MEGAN MCARDLE: What?s Happening At The FDIC? ?Clearly, these banks have been trading while insolve?

By Glenn Reynolds

MEGAN MCARDLE: What’s Happening At The FDIC? “Clearly, these banks have been trading while insolvent for quite some time, hoping against hope that everything would somehow turn around. Meanwhile, they poured more of their investor and depositor’s assets into pursuing a Hail Mary pass. That’s the sort of behavior that I expect from desperate bank presidents, but the very reason that we have bank regulators is to crack down on that sort of thing.” And yet, they didn’t.

UPDATE: Perhaps the FDIC can’t afford to do much more.

Plus, Failed Banks Weighing on FDIC. Also, Bank Fails, And So Did Announcement. “Two weeks before the Office of Thrift Supervision swooped in and closed Dwelling House Savings & Loan Association, agency officials emailed a press release announcing the failure of an Ohio bank. There was a clear problem with the release, though: Two sentences about also closing Dwelling House appeared in the same document, blaring in bright-red type with cross-out lines through the still-visible words.”

Full post as published by Instapundit.com on August 17, 2009 (boomark / email).