Goldman to be paid $1bn if CIT fails, US will lose $2.3 billion

Goldman Sachs to be paid more than $1bn if CIT fails, and US taxpayers would lose $2.3bn. Republican robber barons. Welfare for the bankrupt banks, for a war machine. The agreement with Goldman states that if CIT defaults or goes bankrupt, it “would be required to pay a make-whole amount” that totals $1bn, .. Goldman extended to CIT $3 bn, US gov $2.3 billion. Goldman will get $1 billion back, US gov nothing. good deals between good boys. lets milk the US Treasury.

FT.com / Companies / Financial Services - Goldman to be paid $1bn if CIT fails:

UN wants new global currency to replace dollar - Telegraph

"The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world's monetary system since the Second World War."

Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion

UN wants new global currency to replace dollar - Telegraph

US Tres Sec Geithner Asks Congress to Increase the $12.1 trillion Federal Debt Limit. Critically important.

Federal government's budget deficit reached $1.3 trillion through the first ten months of fiscal 2009, on track to reach a record high of $1.8 trillion for the 12-month period."

causes: mass exporting of industries, wars, defense budget, large scale ever increasing medical care fraud

Geithner Asks Congress to Increase Federal Debt Limit - WSJ.com:

Financial 911, 2008. 158-year-old investment bank Lehman Bros collapsed in bankruptcy on Sept. 15, 2008, listing $613 billion in debt.

Fuld, former SEO of Lehman Bors, said naked short selling -- coupled with “unsubstantiated rumors” -- played a role in the demise of both his bank and Bear Stearns.

As Lehman Brothers Holdings Inc. struggled to survive last year 2008, as many as 32.8 million shares in the company were sold and not delivered to buyers on time as of Sept. 11, 2008, according to data compiled by the Securities and Exchange Commission and Bloomberg.
That was a more than 57-fold increase over the prior year’s peak of 567,518 failed trades on July 30, 2007.

“Abusive short selling amounts to gasoline on the fire for distressed stocks and distressed markets,”

Short sellers arrange to borrow shares, then dispose of them in anticipation that they will fall. They later buy shares to replace those they borrowed, profiting if the price has dropped.

Naked short sellers don’t borrow before trading -- a practice that becomes evident once the stock isn’t delivered. Such trades can generate unlimited sell orders, overwhelming buyers and driving down prices.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aB1jlqmFOTCA&refer=news

US banks being shut down by FDIC.

The FDIC classified 171 banks as “problem” in the third quarter 08, a 46 percent jump from the second quarter 08, and said industry earnings fell 94 percent to $1.73 billion from the previous year 07.
The agency doesn’t identify problem banks by name.

First Centennial Bank of Redlands, California, was seized by a state regulator, the third U.S. bank to fail this year 09, as the recession deepens and the slump in the housing industry sends home foreclosures to records.
National Bank of Commerce in Berkeley, Illinois, and Bank of Clark County in Vancouver, Washington, were shuttered by regulators on Jan. 16,09.

Regulators closed 25 banks last year 08, the most since 1993, draining money from the FDIC deposit insurance fund, which had $34.6 billion as of Sept. 30,08.

The FDIC, the Treasury Department and Federal Reserve have stepped up efforts to aid U.S. institutions that reported more than $500 billion in writedowns and credit losses, and raised more than $400 billion in capital last year 08.

The U.S. on Jan. 16,09 gave Bank of America Corp , the largest bank by assets, $20 billion cash and $118 billion in asset guarantees to help absorb losses after the acquisition of Merrill Lynch & Co.
Citigroup Inc. got $20 billion and $301 billion in guarantees in November 08.

Defaults Rise
More than 2.3 million U.S. properties got a default or auction notice, or were seized by lenders, RealtyTrac Inc., the California-based seller of default data, said Jan. 15,09.
That’s the highest total in the four years of RealtyTrac recordkeeping. Filings rose 41 percent in December 08 from a year earlier 07.

The FDIC last month approved a budget for the coming year that almost doubles spending to $2.2 billion from 2008 to hire staff for handling bank closures. As much as $1 billion was allotted to manage failed banks.

The FDIC oversees 8,384 institutions with $13.6 trillion in assets and insures deposits of as much as $250,000 per depositor per bank.
The agency last month 12-08 doubled premiums charged to banks for coverage to replenish its reserves amid agency forecasts that bank failures through 2013 will cost almost $40 billion.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIFeOX9TTZbE&refer=worldwide