Morn: Got it: My Avast must have banished the miscreant!!.
 
The only thing I can say is good article but Alas, behind the curve. Though extremely well regarded BIS, must have put so much time into verification, they are late to the table. They have but to send Mt. a small check.
 
I can't believe that though every housewife/part time neighborhood Real Estate Agent knew there was a new game being played years before the Wall Street Wizards baked their first CDO cake. She knew most buyers would never-(couldn't)- pay the mortgage! it's that simple!. She might not have understood what tranche it would occupy in the CDO, -Was-Dat?, but she sure as hell knew it wasn't "Blueberry, peaches, apple pie". And so did her broker who gladly took his slice, and the Lawyers who closed the deal, and the Bank rep. who singed the check to the seller--- And everyone up the line Including the rating Agency's-(who I can't believe are still doing business--complicit in perpetrating a fraud)--"ALL"-  except the rat in the wall who only hoped they'd all leave without dumping the hors d'oeuvres.
 
That's history. I notice they're deliberately vague in alluding to but not specifically predicting a future impact of these toxic debt leftovers.No-one want's to use the word Hell--much less "Freezing over". Can anyone define "Repudiation" can you fit it under the PC umbrella??.
 
While caught up in tossing wet blankets, allow me to state That Winery is not purely Altruistic!. They know full well, as do I, that upon drinking a bottle of wine--or 2--I'm looking for a wheelchair, and once safely ensconced I shall unhesitatingly open a third!!.

 
 To Amend the National Banking Laws and the Federal Reserve Act (P.L. 69-639, 44 STAT. 1224).
Also known as The McFadden Act of 1927. Prohibited interstate banking.
 
# Banking Act of 1933 (P.L. 73-66, 48 STAT. 162).
Also known as the Glass-Steagall Act. Established the FDIC as a temporary agency. Separated commercial banking from investment banking, establishing them as separate lines of commerce.
 
# Banking Act of 1935 (P.L. 74-305, 49 STAT. 684).
Established the FDIC as a permanent agency of the government.
 
# Federal Deposit Insurance Act of 1950 (P.L. 81-797, 64 STAT. 873).
Revised and consolidated earlier FDIC legislation into one Act. Embodied the basic authority for the operation of the FDIC.
 
# Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133).
Required Federal Reserve Board approval for the establishment of a bank holding company. Prohibited bank holding companies headquartered in one state from acquiring a bank in another state.
 
# Sarbanes-Oxley Act of 2002 (P.L. 107-204)*
(pdf version from Government Printing Office.)
Sarbanes-Oxley establishes the Public Company Oversight Board to regulate public accounting firms that audit publicly traded companies. It prohibits such firms from providing other services to such companies along with the audit. It requires that CEOs and CFOs certify the annual and quarterly reports of publicly traded companies. The Act authorizes, and in some cases requires, that the Securities and Exchange Commission (SEC) issue rules governing audits.
 
The law requires that insiders may no longer trade their company's securities during pension fund blackout periods. It mandates various studies including a study of the involvement of investment banks and financial advisors in the scandals preceding the legislation. Also included are whistle blower protections, new federal criminal laws, including a ban on alteration of documents.
 
Standing today as tombstones over the gutted remains beneath which give testimony to the efficiency of the Victorious Lobbyist and his sponsors-and payees- to whom all the chips in this current Monopoly Game Accrue.
 
And the Eulogy is simply----"Too big to fail"!!
 
200 million taxpayers??-----Just big enough to pay!!

From Sinclair.....[ This week’s losses were extremely serious, a fact belied by the virtual absence of press coverage. They were the largest in any single week since the failure of IndyMac Bank on July 11, 2008.  
 
IndyMac had assets of about $32 billion and deposits of $19 billion. Its failure cost the FDIC an estimated $8 billion.
 
The seven banks that failed this week had combined assets of about $25.8 billion and deposits of $19.6 billion. These failures cost the FDIC an estimated $7.33 billion.  
 
Prior to this week, the FDIC’s estimated losses from 57 bank failures in 2010 stood at about $8.6 billion. This week’s failures practically doubled that figure, to $15.93 billion.  
 
This information cannot be reconciled with the MOPE that states the banking sector has recovered. To the contrary, these failures speak of deeply-rooted problems in the banking sector that appear to be getting worse over time. ]

I like John Bogle's perspective on the CDO and their derivatives - "Wall Street doesn't lose. Speculation on Wall Street subtracts value from our society. It's a gamble, like Las Vegas, pitting one investor against another." (from Investment U)

I don' neeed no steeenkin' license!.

Learning from the Bank of Dad   or Banking catechism at its best.
 
I was not able to post the article in a single post  and did not want to cut it in multiple posts ;  
 
so here is the link to it:
 
http://www.beatingbuffett.com/?p=2296
 
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