Bing Blog

Reassurances that really make me nervous

IndyMac Bank

There are several statements that are recognized as famously untrue the moment they are uttered. Some are not printable in this context but have to do with certain aspects of sexual restraint. Others are more businesslike, such as:

  • "This investment has great upside with virtually no downside risk."
  • "Our new pension plan is a terrific improvement on our old one."
  • "This company is not for sale under any circumstances."
  • "There are no further headcount reductions in the works."
  • "I have nothing but confidence in Morty. He's a great senior officer and a true friend."

The latter, of course, is the last thing uttered by the CEO before the Morty in question is noisily shoved out a window from a very high floor.

In that regard, the following AP wire story gave me the willies this morning:

ASSOCIATED PRESS – 7/15/08
FDIC CHAIR: DEPOSITS IN NATION’S BANKS ARE SAFE

The nation's banking system is "absolutely safe" and Americans' insured deposits in banks protected, the head of the Federal Deposit Insurance Corporation said Tuesday.

"Insured deposits are absolutely safe," Sheila Bair, FDIC chair, said in an interview on CBS' "The Early Show." "The banking system as a whole is absolutely safe."

The FDIC insures bank deposits of up to $100,000 and up to $250,000 for funds in retirement accounts such as an IRA.

Bair said that while there will likely be more bank closings — like that of IndyMac Bank, which last week became the largest regulated thrift to fail — they won't occur on a large scale and should be put in "appropriate context."

"We've had five bank closings this year," Bair said. "I won't say that banks don't have challenges right now. They do." But, she noted, "No insured depositor has ever lost a penny of insured deposits throughout the FDIC's 75-year history."

Know what I mean?

14 Comments Add Comment

I'm with you, it's up there with CEO's publicly blaming all their problems on a grand conspiracy by the shorts.

If Morty worked for a bank, I imagine he'd save the CEO the trouble of shoving him out the window...

I think I've seen this movie before ... but it was called "Continental Illinois" and was in black-and-white way back in 1984 and starred John Lytel ...

Could you pass the popcorn?

And of course, "The check is in the mail."

Anyone who is paying attention should have the willies. We are cruising into unknown waters, and I see storm clouds getting much darker. I hope the lifeboats are well provisioned.

Imagine being the next president, and inheriting this situation. What a nightmare.

Are we supposed to put our mmoney under our mattresses?

If you're interested in how "GRAND PA" felt in 1929, just hang on!!!

Hoover was whisked into "INFAMY"!!!

Lies are not lies if you believe them, later they become untruths and sometimes they are called misspoken words.

Trust your goverement, trust your banks, trust your local drug dealer. duh okay bubba give your money to the nice gypsy woman so she can burn it to remove the curse.

I have to agree with Bob Shelby on that. Since hearing about the banks yesterday, I keep thinking about the great depression.

Those that have houses should probably get out the shovels and empty mayo jars. Except those that own houses that are built so close to each other, they might want to pick a different spot than their yard like the rest of us that rent.

The naive side of me would like to believe that my small credit union that I have used for years is safe.

I'd be more likely to believe that each millionaire+ in this country will pony up $500K to atone for years of profit-taking with tax breaks....for the love of their country,capitalism and the current administration.

Clap if you believe...!

How much did it cost to quote this much of an AP story?

Do you think that there will be peace in our time, too?

No one asked her how they calculate the amount of each account which is insured. This woman would be a whiz at income tax returns.

Luckily for me, I don't have 100k in the bank. Phew!

You're right, Bing. Such supple, seductive sophistry that leaves you wondering when the BOHICA moment is coming. Once Sheila gets finished sodomizing us, I wonder whether she'll offer us a cigarette?

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