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 Goodbye John Reich, Thanks for Screwing Up the Thrifts View next topic
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Aristotle
Nitroglycerin


Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

Goodbye John Reich, Thanks for Screwing Up the Thrifts
PostPosted: Sat Feb 28, 2009 10:48 pm Reply with quoteBack to top

The Bush Administration had a hands off, laissez faire regulatory policy for commercial banks and savings banks, and now the cost of that policy, in the form of much higher FDIC insurance premiums, is coming home to roost. The Treasury's Inspector General has investigated one failed thrift, IndyMac Bank, and just this week issued a report blasting the Office of Thrift Supervision, saying that IndyMac failed because OTS was intentionally failing to do its job and regulate the thrifts.

The new emergency FDIC insurance premium, to be levied on the roughly 8,500 federally insured institutions on June 30, will be 20 cents for every $100 of their insured deposits. That compares with an average premium of 6.3 cents paid by banks and thrifts last year.

In addition, the FDIC raised the regular insurance premiums for banks to between 12 and 16 cents for every $100 in deposits starting in April, up from a range of 12 to 14 cents.

As a result of the premium increases, I found it ironic that a wire service story reported that Friday 2/27/09 was the last day of work for John Reich, the nefarious jerk who was the director of the Office of Thrift Supervision under President Bush. Frankly, I am surprised the Obama Administration did not ax him on January 20th.

As part of his duties, Mr. Reich was also a member of the FDIC board, and just this week voted against the increased FDIC insurance premiums. I guess Mr. Reich would have preferred that the FDIC become insolvent by the end of 2009.

In his parting pearls of wisdom, Mr. Reich is quoted as saying the newly increased FDIC insurance premiums "would unfairly burden smaller banks that didn't contribute to the financial crisis with reckless lending."

Look in the mirror j@ck@ss. Your actions and inactions which are the direct reason these FDIC insurance premiums are being increased.

Back in the late 1980's the FDIC kept a black list of high level management people who were involved in banks and S&Ls which failed. The people on the blacklist were not allowed to work in the banking business again. If that list is still around, I nominate "John Reich" to be added as its newest member.

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Aristotle

As Yogi Berra said "It's like deja vu all over again."
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rocketrob
Dyn-o-mite!


Joined: 18 Mar 2008
Posts: 405

Re: Goodbye John Reich, Thanks for Screwing Up the Thrifts
PostPosted: Mon Mar 02, 2009 12:46 am Reply with quoteBack to top

Right on, Aristotle! The OTS allowed the biggest, most criminal, fraudulent banks to conduct their illegal business. Look at the who's who of the imploded, bought out or absorbed by the gov itself. This man and his top people should be investigated. They were either stupid or criminal or BOTH.
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