Bloomberg interview with FDIC Chairman Sheila Bair
30/09/08 09:45
Hello Traders,
Listen to the Bloomberg interview with FDIC Chairman Sheila Bair... Listen to the undertones and central themes of her well articulated and non-deceptive commentary. My earlier comments on FDIC support max of approximately 78B is confirmed in her comments. FDIC used 15% to rescue IndyMac and the question remains about what will happen with any significant number or size of future bank failures and its impact on personal net worth. This will further compound the tightening of purchasing power of US residents, above the declined perceived value of their real estate holdings, equities portfolios and contraints on personal spending as a result of rising inflation.
Listen to the Bloomberg interview with FDIC Chairman Sheila Bair... Listen to the undertones and central themes of her well articulated and non-deceptive commentary. My earlier comments on FDIC support max of approximately 78B is confirmed in her comments. FDIC used 15% to rescue IndyMac and the question remains about what will happen with any significant number or size of future bank failures and its impact on personal net worth. This will further compound the tightening of purchasing power of US residents, above the declined perceived value of their real estate holdings, equities portfolios and contraints on personal spending as a result of rising inflation.
Her comments suggest that risk remains in the financial markets and USD and JPY will likely be the beneficiaries for the term of this hightened uncertainty.
Bair Says WaMu Closing a `Zero-Cost Resolution' for FDIC: Watch Video
Sept. 26 (Bloomberg) -- Federal Deposit Insurance Corp. Chairwoman Sheila Bair talks with Bloomberg's Betty Liu from Washington about the failure of Washington Mutual Inc., FDIC's reserves and insurance premiums, Treasury Secretary Henry Paulson's $700 billion financial-market rescue plan and the outlook for U.S. banks. JPMorgan Chase & Co. acquired Washington Mutual Inc.'s branch network for $1.9 billion after the bank was seized by the Office of Thrift Supervision. (Source: Bloomberg)
00:00 "Press leaks" in decision to seize WaMu
00:55 "Zero-cost resolution" for FDIC
01:58 Banks will "weather this" and are "good buy."
03:18 Outlook for bank failures, FDIC reserves
04:49 Potential for bank runs, insurance limits
07:46 Reserves to be "sufficient," FDIC premiums
09:29 Paulson rescue plan, potential for losses
10:56 Banks on "troubled bank" list