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| User Info | All You Need To Know About Bank Balance-Sheet Fraud; entered at 2010-03-08 12:17:50 | |||
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Doublesmooth Posts: 147 Registered: 2008-02-01 
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I emailed the FDIC contact about one of the closings, just to see what they would say. They responded this morning. Once again, reality trumps fiction... Here is the response (complete with grammatical errors) from Mr Barr, followed by my original query. That’s the value the bank had them on their books on their year-end financials, but the true value is much less. It is similar to someone in Las Vegas saying that their house is worth $300,000 because that’s what they paid for it three years ago, but the reality is, if they had to sell it in today’s market, they’d only get $250,000 for it. The FDIC has to sell assets in today’s market. --db -------------------------------------------------------------------------------- From: Glenn Sent: Saturday, March 06, 2010 7:08 PM To: Barr, David Subject: Waterfield Bank - Strange Numbers Mr. Barr, On Friday, you reported the following: As of December 31, 2009, Waterfield Bank had $155.6 million in assets and $156.4 million in deposits. At the time of closing, the amount of deposits exceeding the insurance limits totaled about $407,000. And then... The FDIC estimates that the cost to its Deposit Insurance Fund will be $51.0 million. If assets are essentially equal to deposits ( off by 407,000) then how can the cost to the fund be 51 million? Are the banks assets overstated, or are there other liabilities? How could a bank have $51 million in liabilities unrelated to deposits. Please help me understand this. Thank you. Glenn 2010-03-08 12:17:50
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