David Kirkpatrick

October 1, 2009

In the red FDIC …

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 4:53 pm

… turns to accounting trickery to get above the water line.

September 30, 2008

FDIC guarantee to rise to quarter million?

Filed under: Business, Politics — Tags: , , , , , , — David Kirkpatrick @ 2:28 pm

The two presidential hopefuls are on board.

Of course do any of the adults in the room understand the FDIC couldn’t cover an honest-to-god run on retail banks?

[crickets chirping]

From the link:

Senators Obama and McCain have arrived at the idea of raising the FDIC deposit insurance limit from $100,000 to $250,000. Obama introduced the idea in a statement this morning, and McCain, in a round-robin series of interviews, made the same suggestion. The FDIC already guarantees retirement accounts up to $250,000.

Of course, the FDIC itself has only about $50b in reserves, so Congress would have to recapitalize the FDIC in the event of a series of bank failures.

September 25, 2008

Federal regulators take over Washington Mutual

Filed under: Business, Politics — Tags: , , , , , — David Kirkpatrick @ 11:28 pm

While still negotiating the financial crisis bailoutthe government seized the failing commercial bank, Washington Mutual. It is the largest bank failure in US history. JPMorgan Chase picked up most of the broken pieces.

From the link:

Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history.

Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual, the nation’s largest savings and loan to JPMorgan Chase for $1.9 billion, averting another potentially huge taxpayer bill for the rescue of a failing institution.

Like I’ve repeatedly blogged, this issue is not going away anytime soon.

March 27, 2008

Finance exec predicts long and deep recession

Filed under: Business — Tags: , , , , , , — David Kirkpatrick @ 6:22 pm

More bad omens for the US economy.

Jerry York, a man with strong finance credentials in the business world, is predicting a “very ugly recession.” He adds it will be lengthy and deep. In a speech he specifically mentions the derivatives market, the problems private equity firms are enduring because of lack of leverage, and says more bank failures are not, “off the chart at all, especially for smaller banks.”

From the CFO.com link:

Speaking at the CFO Rising conference in Orlando, former IBM and Chrysler Corp. finance chief Jerry York predicted a lengthy and deep recession for the American economy.

Addressing the topic of what boards are demanding from CFOs, York said if he had only five minutes to give his speech, he would tell finance chiefs that: “CEOs and boards are just going to expect you to get these companies through the mess,” emphasizing that, “I think this is going to be a very ugly recession, I think it is going to be lengthy, I think it is going to be deep.”

York, who is currently CEO of Harwinton Capital, a private equity firm he founded in 2000, is also a corporate director at Tyco International and Apple Inc. During the conference, which has run annually for the last 15 years, York told CFO.com: “It’s going to be a very bad recession, perhaps the worst I’ve seen in the 46 years I’ve been working.”

He described a “perfect storm” of economic calamity, including rising energy prices, rising commodity prices, credit markets in turmoil, credit losses in which “no one knows where the bottom is,” and a housing market in crisis. “We have too many sectors going south all at once, he told the website. What’s more, York can’t find a silver lining: “I frankly don’t see many positive signs right now, we are looking at a really nasty economic situation.”