re: #381 MandyManners

I read here yesterday that McCain said some banks should be allowed to fail. Just this morning I saw a clip on Fox in which Dick Shelby (on the Senate Banking Committee) said the same thing, specifically citing Citibank. Huh?

And, what’s this about one of FCBBHO’s minions saying last week that the FDIC needs lotsa’ cash?

If the “mark to market” valuation model was dropped in favor of discounted cash flows, these banks would suddenly have double the capital on their books, there would then be a market for the mortgages and the credit would start moving, and the banking industry would become very stable again.

And the FDIC was having problems covering all the defaults, but that could have been taken care of quietly behind the scenes. Problem is, the FDIC head Blair said so publicly, thus causing an electronic run on the banks last week that badly damaged some of them.