The Other McCain

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Banks Failing, Taxes Increasing

Posted on | June 14, 2010 | 4 Comments

The FDIC is already $20 billion in the hole and the news just keeps getting worse:

Regulators on Friday shut down a bank in Washington, bringing to 82 the number of U.S. bank failures this year.
Seattle-based Washington First International Bank, with $520.9 million in assets and $441.4 million in deposits, was closed by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corp. as receiver of the failed bank. . . .
With 82 closures nationwide so far this year, the pace of bank failures is more than double that of 2009, which was already a brisk year for shutdowns. By this time last year, regulators had closed 37 banks. The pace has accelerated as banks’ losses mount on loans made for commercial property and development. . . .
As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, and its deficit stood at $20.7 billion as of March 31.

And guess what? Congress is planning to increase taxes on real-estate partnerships “which own most of the commercial buildings in many U.S. markets.” Yeah, that’ll help.

Category: Economics

Comments

4 Responses to “Banks Failing, Taxes Increasing”

  1. Count Vikula
    June 14th, 2010 @ 8:17 pm

    Hmm, wave of asset-sales before year-end to avoid the large incremental tax increase, driving asset prices lower?

    Perhaps, perhaps.

  2. Count Vikula
    June 14th, 2010 @ 4:17 pm

    Hmm, wave of asset-sales before year-end to avoid the large incremental tax increase, driving asset prices lower?

    Perhaps, perhaps.

  3. J David
    June 14th, 2010 @ 9:28 pm

    What happened to that “economic recovery” that our LordandSavior Hussein caused with the various bailouts and stimuli?! The difference between the miraculous and a magic trick is that one of them is just an illusion born of misdirection…

  4. J David
    June 14th, 2010 @ 5:28 pm

    What happened to that “economic recovery” that our LordandSavior Hussein caused with the various bailouts and stimuli?! The difference between the miraculous and a magic trick is that one of them is just an illusion born of misdirection…