Litigation

FDIC Assessments... News About Treasury and Regulatory Concern About Collateral Damage is Instructive

By John Darer

Bloomberg reports today that "the U.S. Treasury and financial regulators are clashing with each other over how to disclose results from the stress tests of 19 U.S. banks, with some officials concerned at potential damage to weaker institutions.

With a May 4 deadline approaching, there is no set plan for how much information to release, how to categorize the results or who should make the announcements, people familiar with the matter said. While the Office of the Comptroller of the Currency and other regulators want few details about the assessments to be publicized, the Treasury is pushing for broader disclosure".

This news illustrates the potential tin cup domino effect on our nation's financial institutions.

Prior Structured Settlements 4Real Posts on FDIC and Banks

1. Bair says FDIC Funding Could Dry Up Amid Surge In Bank Failures
2. Is FDIC Really Backed By The Government?
3. Settlements For Children. Bank Accounts Should Track Old Limits

There are reasons why most state insurance laws prohibit the use of state guaranty funds in a sales situation and you are looking at one of them from the banking parallel.

Full post as published by Structured Settlements 4Real on April 20, 2009 (boomark / email).