On September 5, 2008, Silver State Bank, Henderson, NV was closed by the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
All insured non-brokered deposit accounts have been transferred to Nevada State Bank, Las Vegas, NV ("assuming institution") and will be available immediately. Nevada State Bank entered into a separate agreement to sell the Arizona branches of Silver State Bank to its affiliate National Bank of Arizona. On Monday, the former Silver State Bank locations will reopen as branches of Nevada State Bank in Nevada and as branches of National Bank of Arizona in Arizona.
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http://www.iht.com/articles/2008/09/07/business/fannie.php
The U.S. government's planned takeover of Fannie Mae and Freddie Mac came together hurriedly after advisers poring over the companies' books for the Treasury Department concluded that Freddie's accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter.
The proposal to place both mortgage giants, which own or back $5.3 trillion in mortgages, into a government-run conservatorship also grew out of deep concern among foreign investors that the companies' debt might not be repaid. **meaning we do not not want chinese to sell all those treasury nots because we allowed their money to get lost. I am told but have not verified that some pension funds are deep into Fannie and Freddie as well. JT **
The big question now is whether the U.S. government's move to take over Fannie and Freddie will restore investor confidence in the nation's credit markets, help stabilize the stock market and keep loans flowing to creditworthy borrowers.
Fannie and Freddie, by buying mortgages, provide American banks and other financial institutions with fresh money to make new loans, **(I thought they already had money, ours? :) **) a vital lubricant for the housing and credit markets.
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http://www.bloomberg.com/apps/news?pid=20601087&sid=aMX336c2lWGQ&refer=worldwide
Sept. 7 (Bloomberg) -- Treasury Secretary Henry Paulson decided to take control of Fannie Mae and Freddie Mac after a review found the beleaguered mortgage-finance companies used accounting methods that inflated their capital,**( Sheila Bair seems to be having the same issue, JT)** according to people with knowledge of the decision.
House Financial Services Committee Chairman Barney Frank said in an interview yesterday. The government would make periodic capital injections by buying convertible preferred shares or warrants, ***meaning, we will be paid first if we can not save this thing***
Holders of the companies' common and preferred stock are ``very unlikely to come out of this at all happy,'' and the chief executive officers will be forced out, Frank said. Senior and subordinated debt holders will likely be protected, said other people who were briefed on the plan. ***they will wipe those people out to cover the losses, JT**
Why are we having all of these problems? These guys sold the income for fee's. Now they have to make up for the losses with a fractionalized reserve system in place. If you WERE a share holding in Fannie and Freddie, run along and enjoy the beating. Take note of what got you here.
JT
PS How do you eat an elephant?
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