Monday, November 2, 2009

Absurdity of the Week

And people actually don't think America is in serious trouble? On Friday, the FDIC took over 9 banks which is the most banking institution to fail in one week since the crises began. Well one of these banks was Park national Bank of Chicago. A $4.7 billion asset bank in Chicago. What was going on the same day? This is ridiculous. From the Chicago Tribune:

The timing was awkward. The government shut down $4.7 billion-asset Park National on the same day that its community development arm, Park National Bank Initiatives, received $50 million from Treasury Secretary Timothy Geithner at a ceremony in Chicago. That money is intended to stimulate investment in low-income communities on such projects as charter schools, health clinics and stores.

Say what? Taxpayers were giving them $50 million even as taxpayers were going to take large losses because they could not manage their financial? This all happened the same day??? Good grief.

I am curious what happens to the $50 million. If the entire amount will still be earmarked for low income communities or if it goes in the asset pool and gets haircutted in loss assumptions.

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