Is this how banks work?

[Spaced Cowboy]

There was a rumor that the banks tried to ban this video....

This explains a lot. Let me know your thoughts!

I came across this video and I had to share
it with you immediately. This video is proof
that the banks are not victims in this whole
real estate debacle...

After you watch this video you will be motivated
to make sure that you start making some dough in
this market BECAUSE why should the banks and
bank exec's be the only one's to benefit.

http://www.thinkbigworksmall.com/mypage/archive/1/29027

[Felch]

How would they ban it exactly?

[BeBMan]

The vid didn't load for me. Even more, accessing the link crashed my browser! If that isn't proof for a conspiracy I dunno....

[DanS]

1) The point of the FDIC deals was to unload the failed bank assets as quickly as possible -- i.e., to make them deals bordering on sweetheart.

2) The math that they go through may be correct, but the last bit should have lead the story. The FDIC will share in the losses only after $2 billion in losses on the loan portfolio have already been taken.

[Kidlicious]

dp

[DaShi]

Where was the first one?

[Kidlicious]

Where was the first one?

Here

[Dauphin]

2) The math that they go through may be correct, but the last bit should have lead the story. The FDIC will share in the losses only after $2 billion in losses on the loan portfolio have already been taken.

Their narrative confused me. I would have thought as you did, but I took them to be saying that if they had $1.999 billion in losses, you'd get diddlysquat in help and take the hit, but once you reach $2 billion in losses you would get the superprofits on all deals done - hence the massive profit motive involved.

If you have to deliberately generate up to $2 billion of these losses before you can generate any superprofits (and you'd need $2 billion of those to just break even) there is little point. If the numbers involved are large enough to reach that point (or losses expected are close to $2 billion anyway), then I'd say it becomes more relevant, but not much, cos the motive would then predominantly be about the superprofit, not the deliberate generation of losses.

[ZEE]

no.