Time to shitcan the "extend and pretend" naysayers on bank failures

[banned from Kos]

You know who I am talking about - the Zerohead and Naked Capitalism fearmongers out there who repeated claimed the banks were faking it all, were "zombies" and would fail by now. Oh, the derivatives! OMG!!!

They are wrong, will always be wrong, and will be wrong again.

Obama, Barney Frank, Bernanke, and Tim Geithner fixed them. They are no threat to our economy now.

WELL DONE, GENTLEMEN! I always knew you were right!

[patrice]

1. Huh? LIBOR is still sitting out there & that's maybe at least $500 Trillion. AUDIT the Fed. nt

[banned from Kos]

2. The Fed is audited by Deloitte - the premier audit firm in the world

and has been for decades. The GAO/Congress contracts them yearly.

Don't believe the shit you read here.

Libor is a peanut in a tornado.

[Angry Dragon]

3. Are you saying everything is fixed in the banking and investment community??

[Fuddnik]

4. He's not saying anything.

Just stirring his usual shit.

[banned from Kos]

5. Yeah - pretty much so. Until Republicans come along and put a Greenspan clone

in charge who will refuse to use the tools President Obama gave him to regulate things.

We're good now.

Even Fannie Mae made $5 billion this quarter in a lame housing market.

[Angry Dragon]

6. I thought that was what you were saying

too bad you are dead wrong

the banks and investment industry is still predatory and there is another failure waiting around the corner

nothing is fixed, still fraud, no one in prison from the first fraud

[banned from Kos]

7. I was right in 2009, 2010, 2011 and now halfway through 2012.

Big banks have huge loan loss reserves, huge reserve accounts at the Fed, lots of capital, and they are profitable. But go ahead and hate them - I don't care.

I just want the Obama team to get credit for a great job.

[Angry Dragon]

8. I think I will

[Fuddnik]

9. Poor widdle picked-on banksters.

Todays NYT. Gensler is the Chair of the CFTC.


Op-Ed Contributor
Libor, Naked and Exposed
By GARY GENSLER
Published: August 6, 2012

AMERICANS who save for the future, use credit cards or borrow money for tuition, cars and homes deserve assurance that the interest rates on their savings and loans are set in a reliable and honest way.

That’s why the revelation that the British bank Barclays attempted to manipulate the London interbank offered rate, or Libor — one of the benchmark rates used to determine the cost of borrowing around the world — is so disturbing. But the Barclays case isn’t only about misconduct by large financial institutions. It also raises questions about the reliability and accuracy of these key interest rates, which are largely determined by the private sector, without significant government oversight.

When you save money in a money market fund or short-term bond fund, or take out a mortgage or a small-business loan, the rate you receive or pay is often based, directly or indirectly, on Libor. It’s the reference rate for nearly half of adjustable-rate mortgages in the United States; for about 70 percent of the American futures market; and for a majority of the American swaps market, where businesses hedge risks from changes in interest rates.

Libor is supposed to be the average rate at which the largest banks honestly believe they can borrow from one another unsecured (that is, without posting collateral). Libor was set up in the 1980s when banks regularly made loans to other banks on that basis.

However, the number of banks willing to lend to one another on such terms has been sharply reduced because of economic turmoil, including the 2008 global financial crisis, the European debt crisis that began in 2010, and the downgrading of large banks’ credit ratings this year.

(snip)

http://www.nytimes.com/2012/08/07/opinion/libor-naked-and-exposed.html?_r=1&nl=opinion&emc=edit_ty_20120807
------------------------------------------------

Fuck those evil, greedy, predatory, parasitic bastards.

[mother earth]

11. 2nd that, except you forgot "criminal" to describe those bastards. nt

[mbperrin]

10. We don't need banks - they're a drag on the economy.

Thank god I have not used one in any way since 1978. I'm better off.