Holy Crimes - Direct From Joe.My.God

This Week In Holy Crimes

Over the last seven days...

South Carolina: Pastor John David Helmuth busted in internet sting for trying to meet what he thought was a 13 year-old girl for sex.
Connecticut: Rev. Iura Godenciuc charged with defrauding school district of $76K.
New York: Father William Blasingame pleads guilty to stealing $86K from his diocese for plastic surgery and botox. Linked photo proves he did not spend wisely.
Massachusetts: Rabbi Stanley Zusia Levitt charged with sexually assaulting two pre-teen boys.
Illinois: Father Fred Lenczycki, the first Catholic priest ever declared "sexually violent," has been released from prison after only five years after confessing to sexually assaulting over 30 boys.
Pennsylvania: Rev. Vincent Navorro Meekin charged with embezzling funds donated to build his church a new roof.
Arizona: Father Dale Fushek to have five separate trials for sexual crimes against minors. Bonus: Fuskek is the founder of Teen Life Ministries.
Illinois: Father Daniel McCormick may be indefinitely confined under the state's Sexually Violent Persons Act. McCormick is due for release after confessing to molesting five boys ages 8-12, but the state fears he will reoffend.
North Carolina: Pastor Robert Reaves has fired his attorneys and wants to defend himself in the 2008 stabbing murder of a woman who was seeing a man Reaves was reportedly interested in. Reaves has previous convictions for sexually abusing boys.
New Jersey: Rev. John Harris Jr. charged with sexually harassing a church employee who says she was fired for refusing his advances.
North Carolina: Pastor Brian Andrew Klein sued by parishioner who claims he coerced her into a sexual relationship when she was a minor.
Israel: Rabbi Avichai Zehavi under house arrest after four families come forward with allegations of sexual abuse of minors.
New York: Angelo Serrano, Director of Religious Education at St. Lucy - St. Patrick Roman Catholic Church, charged with molesting 10 year-old boy. Cops say there may up to 17 other victims.

This Week's Winner -
Oklahoma: Pastor Ted Haggard is telling a local newspaper that he is now "completely free of homosexual compulsions." Haggard and his wife have been holding weekly "meetings" with fellow Christians in his Colorado Springs home. Haggard: "As a church, we're God's primary hand to help people with sin problems, whether it be gluttony, pride, hate, high-mindedness, selfishness, immorality (such as) fantasizing, porn, masturbation, homosexuality, bisexuality.

Here's #95

Press Releases
First Citizens Bank and Trust Company, Incorporated, Columbia, South Carolina, Assumes All of the Deposits of Georgian Bank, Atlanta, Georgia

FOR IMMEDIATE RELEASE
September 25, 2009
Media Contact:
LaJuan Williams-Dickerson
Office (202) 898-3876
Email: lwilliams-dickerson@fdic.gov

Georgian Bank, Atlanta, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, to assume all of the deposits of Georgian Bank.

The five branches of Georgian Bank will reopen on Monday as branches of First Citizens Bank. Depositors of Georgian Bank will automatically become depositors of First Citizens Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until First Citizens Bank can fully integrate the deposit records of Georgian Bank.

This evening and over the weekend, depositors of Georgian Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of July 24, 2009, Georgian Bank had total assets of $2 billion and total deposits of approximately $2 billion. In addition to assuming all of the deposits of the failed bank, First Citizens Bank agreed to purchase essentially all of the assets.

The FDIC and First Citizens Bank entered into a loss-share transaction on approximately $2 billion of Georgian Bank's assets. First Citizens Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-405-1498. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/georgian.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $892 million. First Citizens Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Georgian Bank is the 95th FDIC-insured institution to fail in the nation this year, and the nineteenth in Georgia. The last FDIC-insured institution closed in the state was First Coweta, Newnan, on August 21, 2009.

aargh!

Even though "Talk Like A Pirate" day came and went ("Avast, me heartys") I'm still in "aargh" mode.

There's so much crap flying around, so much mindless bigotry, that I'm almost speechless.

Anti-immigrant, anti-gay, anti-liberal, anti-woman anti-black, brown, every damn thing, appears to be sweeping the good old U.S.A.

I do not know where to start -- in fact I haven't quite known where to start for a good while -- so, I haven't. It appears to be a nationwide epidemic of batshittery.

People who HAVE "Socialist" government run health care (Medicare) are railing against ""Socialist" government run health care.

Americans who claim to cleve to The Constitution are up in arms against other American Citizens claiming some of their equal rights as citizens (ENDA).

Christian church leaders who are part of a group still discriminated against (African-Americans) are dead set against expanded marriage rights, and ANY rights for LGBT Americans -- because, in this SECULAR nation, and society, their "Holy Book" (The Bible) Appears to say that ancient goat hearders killed homosexuals -- so, we should do the same today.

At the same time, virulent racism has come back out of the closet -- still, as always, claiming it's not racism.

It's just too much stuff to comment about. Too many injustices to even mention. It's so much easier to "drag and drop" stuff others have already thought about, composed, and posted. It's so much easier to list bank failures, and tut-tut about the economy. We're doing, as a nation, the equivalent of "fiddling while Rome burns". We still haven't gotten away from the Republican "I've got mine - fuck you." mindset. I guess things have to get worse first ---- too many "losers" still think they are "winners".

Sigh --- where to begin?

Why The Dow Is Hitting 10,000

this direct from Robert Reich's blog. Follow the link and bookmark it.



Tuesday, September 22, 2009
Why the Dow is Hitting 10,000 Even When Consumers Can't Buy And Business Cries "Socialism"

So how can the Dow Jones Industrial Average be flirting with 10,000 when consumers, who make up 70 percent of the economy, have had to cut way back on buying because they have no money? Jobs continue to disappear. One out of six Americans is either unemployed or underemployed. Homes can no longer function as piggy banks because they’re worth almost a third less than they were two years ago. And for the first time in more than a decade, Americans are now having to pay down their debts and start to save.

Even more curious, how can the Dow be so far up when every business and Wall Street executive I come across tells me government is crushing the economy with its huge deficits, and its supposed “takeover” of health care, autos, housing, energy, and finance? Their anguished cries of “socialism” are almost drowning out all their cheering over the surging Dow.

The explanation is simple. The great consumer retreat from the market is being offset by government’s advance into the market. Consumer debt is way down from its peak in 2006; government debt is way up. Consumer spending is down, government spending is up. Why have new housing starts begun? Because the Fed is buying up Fannie and Freddie’s paper, and government-owned Fannie and Freddie are now just about the only mortgage games remaining in play.

Why are health care stocks booming? Because the government is about to expand coverage to tens of millions more Americans, and the White House has assured Big Pharma and health insurers that their profits will soar. Why are auto sales up? Because the cash-for-clunkers program has been subsidizing new car sales. Why is the financial sector surging? Because the Fed is keeping interest rates near zero, and the rest of the government is still guaranteeing any bank too big to fail will be bailed out. Why are federal contractors doing so well? Because the stimulus has kicked in.

In other words, the Dow is up despite the biggest consumer retreat from the market since the Great Depression because of the very thing so many executives are complaining about, which is government’s expansion. And regardless of what you call it – Keynesianism, socialism, or just pragmatism – it’s doing wonders for business, especially big business and Wall Street. Consumer spending is falling back to 60 to 65 percent of the economy, as government spending expands to fill the gap.

The problem is, our newly expanded government isn't doing much for average working Americans who continue to lose their jobs and whose belts continue to tighten, and who are getting almost nothing out of the rising Dow because they own few if any shares of stock. Despite the happy Dow and notwithstanding the upbeat corporate earnings, most corporations are still shedding workers and slashing payrolls. And the big banks still aren't lending to Main Street.

Trickle-down economics didn't work when the supply-siders were in charge. And it's not working now, at a time when -- despite all their cries of "socialism" -- big business and Wall Street are more politically potent than ever

DENIED!!

Health-Care Reform 2009

Tracking the National Health-Care Debate |
Acne, Pregnancy Among Disqualifying Conditions



» Links to this article
By David S. Hilzenrath
Washington Post Staff Writer
Saturday, September 19, 2009

A proposal to make preexisting health conditions irrelevant in the sale of insurance policies could help not just the seriously ill but also people who might consider themselves healthy, documents released Friday by a California-based advocacy group illustrate.

Health insurers have issued guidelines saying they could deny coverage to people suffering from such conditions as acne, hemorrhoids and bunions.

One big insurer refused to issue individual policies to police officers and firefighters, along with people in other hazardous occupations.

Some treated pregnancy or the intention to adopt as a reason for rejection.

As Congress and President Obama work on legislation to overhaul the nation's health-care system, one of their main objectives is to stop insurers from denying coverage on the basis of health status. Proposed legislation would prohibit insurers from denying coverage to individuals with preexisting conditions or charging them higher premiums because of their medical history -- practices known as medical underwriting.

Even the insurance lobby has endorsed that goal as part of a larger reform package in which the government would extend coverage to the uninsured, greatly expanding the market for insurance.
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Guidelines that insurance companies have written for professionals involved in selling policies offer a glimpse inside the underwriting process.

"What these documents show is the lengths to which insurance companies are willing to go to make a profit," said Jerry Flanagan, health-care policy director of the advocacy group Consumer Watchdog, which distributed the documents Friday. "What it shows is that insurance companies want premiums without any risk."

Consumer Watchdog argues that consumers should be given the option of enrolling in a government-run health plan. It obtained the documents from a California insurance broker, Flanagan said.

A PacifiCare "Medical Underwriting Guidelines" document from 2003 lists under "Ineligible Occupations" such risk-takers as stunt people, test pilots and circus workers -- along with police officers, firefighters and migrant workers.

Uninsurable conditions included pregnancy, and being an "expectant father" was grounds for "automatic rejection." So was having received "therapy/counseling" within six months of the application. There was also this more general disqualifier: "currently experiencing/experienced within the last 12 months symptoms for which a physician has not been consulted."

The PacifiCare document "is completely outdated and predates the acquisition of PacifiCare by United Healthcare," Cheryl J. Randolph, a spokeswoman for the parent company, said by e-mail. She declined to provide current underwriting documents.

"Underwriting enables insurers to adequately assess risks, keeping premium costs lower for more consumers," she added.

Health Net guidelines for 2006 say that people could be denied coverage or charged higher premiums if they were taking certain medications, including Zyrtec, an allergy remedy, and Lamisil, which is widely advertised as a treatment for toenail fungus.

Pregnant women could be rejected, as could expectant fathers, the document said.

A Health Net spokeswoman did not respond to requests to comment.

Blue Cross of California guidelines for 2004 said potential disqualifiers included chronic tonsillitis and, under certain circumstances, varicose veins.

Kristin E. Binns, a spokeswoman for parent company WellPoint, said by e-mail that she could not comment on the guidelines because they are from years ago.

#93 & #94

Press Releases
First Financial Bank, National Association, Hamilton, Ohio, Assumes All of the Deposits of Irwin Union Bank, F.S.B., Louisville, Kentucky, and Irwin Union Bank and Trust Company, Columbus, Indiana

FOR IMMEDIATE RELEASE
September 18, 2009
Media Contact:
David Barr
Office Phone: (202) 898-6992
Cell Phone: (703) 622-4790
Email: dbarr@fdic.gov

Federal and state regulators today closed Irwin Union Bank, F.S.B., Louisville, Kentucky, and Irwin Union Bank and Trust Company, Columbus, Indiana, respectively. The institutions are banking subsidiaries of Irwin Financial Corporation, Columbus, Indiana. The regulators immediately named the Federal Deposit Insurance Corporation (FDIC) as the receiver for the banks. To protect depositors, the FDIC entered into a purchase and assumption agreement with First Financial Bank, National Association, Hamilton, Ohio, to assume all of the deposits of the two banks.

Irwin Union Bank and Trust Company, Columbus, Indiana, was closed by the Indiana Department of Financial Institutions. As of August 31, 2009, it had total assets of $2.7 billion and total deposits of approximately $2.1 billion. Irwin Union Bank, F.S.B., Louisville, Kentucky, was closed by the Office of Thrift Supervision. As of August 31, 2009, it had total assets of $493 million and total deposits of approximately $441 million.

Irwin Union B&T Company and Irwin Union Bank, F.S.B. had 27 locations between them and will reopen during their normal business hours beginning Saturday as branches of First Financial Bank. Depositors of the failed institutions will automatically become depositors of First Financial Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. All customers should continue to use their existing branches until First Financial Bank can fully integrate the deposit records of the two institutions.

This evening and over the weekend, depositors of Irwin Union B&T Company and Irwin Union Bank, F.S.B. can access their money by writing checks or using ATM or debit cards. Checks drawn on the institutions will continue to be processed. Loan customers should continue to make their payments as usual.

First Financial Bank will pay the FDIC a premium of one percent to assume all of the deposits of Irwin Union B&T Company and zero percent for those of Irwin Union Bank, F.S.B. In addition to assuming all of the deposits of the failed institutions, First Financial Bank agreed to purchase essentially all of their assets.

The FDIC and First Financial Bank entered into a loss-share transaction on approximately $2.5 billion of the assets of Irwin Union B&T Company and Irwin Union Bank, F.S.B. First Financial Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss-share transactions, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers of the two institutions who have questions about today's transaction can call the FDIC toll-free at 1-800-528-4893, or they can visit the FDIC's Web site for Irwin Union B&T Company at http://www.fdic.gov/bank/individual/failed/irwin-in.html or for Irwin Union Bank, F.S.B. at http://www.fdic.gov/bank/individual/failed/irwin-ky.html.

The toll-free telephone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for both institutions will be $850 million. First Financial Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. The failure of the two institutions brings the nation's total number this year to 94. This was the first failure of the year in Indiana and Kentucky. The last FDIC-insured institutions closed in the respective states were The Rushville National Bank, Rushville, Indiana, on December 18, 1992, and Future Federal Savings Bank, Louisville, Kentucky, on August 30, 1991.

Americas Taken Hostage

Dylan Ratigan

Host of "Morning Meeting with Dylan Ratigan" on MSNBC
Posted: September 13, 2009 11:28 PM



The American people have been taken hostage to a broken system.

It is a system that remains in place to this day.

A system where bank lobbyists have been spending in record numbers to make sure it stays that way.

A system that corrupts the most basic principles of competition and fair play, principles upon which this country was built.

It is a system that so far has forced the taxpayer to provide the banks with the use of $14 trillion from the Federal Reserve, much of the $7 trillion outstanding at the US Treasury and $2.3 trillion at the FDIC.

A system partially built by the very people who currently advise our President, run our Treasury Department and are charged with its reform.

And most stunningly -- it is a system that no one in our government has yet made any effort to fundamentally change.

Like health care, this is a referendum on our government's ability to function on behalf of the American people. Ask yourself how long you are willing to be held hostage? How long will you let our elected officials be the agents of those whose business it is to exploit our government and the American people at any cost?

As hostages -- was there any sum of money we wouldn't have given AIG?

Why did we pay Goldman Sachs and all the other banks 100 cents on the dollar for their contracts with AIG, using taxpayer money, while we forced GM and others to take massive payment cuts?

Why hasn't any of the bonus money paid to the CEOs that built this financial nuclear bomb been clawed back?

And more than anything else -- why does the US Congress refuse to outlaw the most anti-competitive structure known to our economy, one summed up as TOO BIG TOO FAIL?

It has become startlingly clear that we as a country, and I as a journalist, had made a grave error in affording those who built and ran those banks and insurance companies the honorable treatment of being called capitalists. When in fact the exact opposite was true, these people were more like vampires using the threat of Too Big Too Fail to hold us hostage and collect ongoing ransom from the US Government and the American taxpayer.

This was no unlucky accident. The massive spike in unemployment, the utter destruction of retirement wealth, the collapse in the value of our homes, the worst recession since the Great Depression all resulted directly from these actions.

Even with all that -- the only changes that have been made, have been made to prop up and hide the massive flaws on behalf of those who perpetuated them. Still utterly nothing has been done to disclose the flaws in this system, improve it or rebuild it.

Last fall was an awakening for me, as it was for many in our country.

And yet, our Congress has yet to open its eyes, much less do anything about it. In fact conditions have never been better for the banks or worse for the rest of us.

Why is this? Who does our Government work for? How much longer will we as Americans tolerate it? And what, if anything, can we do about it?

As we approach the anniversary of the bailouts for our banks and insurers -- and watch the multi-trillion taxpayer-funded programs at the Federal Reserve continue to support banks and subsidize their multibillion bonus pools, we must ask if our politicians represent the interests of America? Or those who would rob America of its money and its future?

As a country, we must demand that our politicians stop serving those whose business models are based on systemic theft and start serving those who seek to create value for others -- the workers, innovators and investors who have made this country great.

One Year Later

This from Robert Reich's blog. Follow link to the original.


Sunday, September 13, 2009
The Continuing Disaster of Wall Street, One Year Later

As he attempted to do with health care reform last week, the President is trying to breathe new life into financial reform. He's using the anniversary of the death of Lehman Brothers and the near-death experience of the rest of the Street, culminating with a $600 billion taxpayer financed bailout, to summon the political will for change. Yet the prospects seem dubious. As with health care reform, he has stood on the sidelines for months and allowed vested interests to frame the debate. Nor has he come up with a sufficiently bold or coherent set of reforms likely to change the way the Street does business, even if enacted.

Let's be clear: The Street today is up to the same tricks it was playing before its near-death experience. Derivatives, derivatives of derivatives, fancy-dance trading schemes, high-risk bets. “Our model really never changed, we’ve said very consistently that our business model remained the same,” says Goldman Sach's chief financial officer.

The only difference now is that the Street's biggest banks know for sure they'll be bailed out by the federal government if their bets turn sour -- which means even bigger bets and bigger bucks.

Meanwhile, the banks' gigantic pile of non-performing loans is also growing bigger, as more and more jobless Americans can't pay their mortgages, credit card bills, and car loans. So forget any new lending to Main Street. Small businesses still can't get loans. Even credit-worthy borrowers are having a hard time getting new mortgages.

The mega-bailout of Wall Street accomplished little. The only big winners have been top bank executives and traders, whose pay packages are once again in the stratosphere. Banks have been so eager to lure and keep top deal makers and traders they've even revived the practice of offering ironclad, multimillion-dollar payments – guaranteed no matter how the employee performs. Goldman Sachs is on course to hand out bonuses that could rival its record pre-meltdown paydays. In the second quarter this year it posted its fattest quarterly profit in its 140-year history, and earmarked $11.4 billion to compensate its happy campers. Which translates into about $770,000 per Goldman employee on average, just about what they earned at height of boom. Of course, top executives and traders will pocket much more.

Every other big bank feels it has to match Goldman's pay packages if it wants to hold on to its "talent." Citigroup, still on life-support courtesy of $45 billion from American taxpayers, has told the White House it needs to pay its twenty-five top executives an average of $10 million each this year, and award its best trader $100 million.

A few banks like Goldman have officially repaid their TARP money but look more closely and you'll find that every one of them is still on the public dole. Goldman won't repay taxpayers the $13 billion it never would have collected from AIG had we not kept AIG alive. (In one of the most blatant conflicts of interest in all of American history, Goldman CEO Lloyd Blankfein attended the closed-door meeting last fall where then Treasury Secretary Hank Paulson, who was formerly Goldman's CEO, and Tim Geithner, then at the New York Fed, made the decision to bail out AIG.) Meanwhile, Goldman is still depending on $28 billion in outstanding debt issued cheaply with the backing of the Federal Deposit Insurance Corporation. Which means you and I are still indirectly funding Goldman's high-risk operations.

So will the President succeed on financial reform? I wish I could be optimistic. His milktoast list of proposed reforms is inadequate to the task, even if adopted. The Street's behavior since its bailout should be proof enough that halfway measures won't do. The basic function of commercial banking in our economic system -- linking savers to borrowers -- should never have been confused with the casino-like function of investment banking. Securitization, whereby loans are turned into securities traded around the world, has made lenders unaccountable for the risks they take on. The Glass-Steagall Act should be resurrected. Pension and 401 (k) plans, meanwhile, should never have been allowed to subject their beneficiaries to the risks that Wall Street gamblers routinely run. Put simply, the Street has been given too many opportunities to play too many games with other peoples' money.

But, like the health care industry, Wall Street has platoons of lobbyists and an almost unlimited war chest to protect its interests and prevent change. And with the Dow Jones Industrial Average trending upward again -- and the public's and the media's attention focused elsewhere, especially on health care -- it will be difficult to summon the same sense of urgency financial reform commanded six months ago.

Yet without substantial reform, the nation and the world will almost certainly be plunged into the same crisis or worse at some point in the not-too-distant future. Wall Street's major banks are already en route to their old, dangerous ways -- now made more dangerous by their sure knowledge that they are too big to fail.

Go to "The Big Picture"

It's time to ggo to "The Big Picture" (follow link) for info on "the ghost fleet" - and its implications.

Banking Problems Bigger

This from Bloomberg


Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman


By Mark Deen and David Tweed

Sept. 13 (Bloomberg) -- Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”

Stiglitz’s views echo those of former Federal Reserve Chairman Paul Volcker, who has advised President Barack Obama’s administration to curtail the size of banks, and Bank of Israel Governor Stanley Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.”

A year after the demise of Lehman forced the Treasury Department to spend billions to shore up the financial system, Bank of America Corp.’s assets have grown and Citigroup Inc. remains intact. In the U.K., Lloyds Banking Group Plc, 43 percent owned by the government, has taken over the activities of HBOS Plc, and in France BNP Paribas SA now owns the Belgian and Luxembourg banking assets of insurer Fortis.

While Obama wants to name some banks as “systemically important” and subject them to stricter oversight, his plan wouldn’t force them to shrink or simplify their structure.

Stiglitz said the U.S. government is wary of challenging the financial industry because it is politically difficult, and that he hopes the Group of 20 leaders will cajole the U.S. into tougher action.

G-20 Steps

“We aren’t doing anything significant so far, and the banks are pushing back,” he said. “The leaders of the G-20 will make some small steps forward, given the power of the banks” and “any step forward is a move in the right direction.”

G-20 leaders gather next week in Pittsburgh and will consider ways of improving regulation of financial markets and in particular how to set tighter limits on remuneration for market operators. Under pressure from France and Germany, G-20 finance ministers last week reached a preliminary accord that included proposals to claw-back cash awards and linking compensation more closely to long-term performance.

“It’s an outrage,” especially “in the U.S. where we poured so much money into the banks,” Stiglitz said. “The administration seems very reluctant to do what is necessary. Yes they’ll do something, the question is: Will they do as much as required?”

Global Economy

Stiglitz, former chief economist at the World Bank and member of the White House Council of Economic Advisers, said the world economy is “far from being out of the woods” even if it has pulled back from the precipice it teetered on after the collapse of Lehman.

“We’re going into an extended period of weak economy, of economic malaise,” Stiglitz said. The U.S. will “grow but not enough to offset the increase in the population,” he said, adding that “if workers do not have income, it’s very hard to see how the U.S. will generate the demand that the world economy needs.”

The Federal Reserve faces a “quandary” in ending its monetary stimulus programs because doing so may drive up the cost of borrowing for the U.S. government, he said.

“The question then is who is going to finance the U.S. government,” Stiglitz said.

To contact the reporters on this story: Mark Deen in Paris at markdeen@bloomberg.netDavid Tweed in Paris at dtweed@bloomberg.net

Problem Banks

There's a great list of problem banks (unofficial) at Calculated Risk. Go to the site for more info.

# 92

I'm a bit late with this one. Stopped for dinner -- and -- to watch Derek Jeter break Gehrig's Yankee hit record. Anyway, here's 92.



Press Releases
First-Citizens Bank & Trust Company, Raleigh, North Carolina, Assumes All of the Deposits of Venture Bank, Lacy, Washington

FOR IMMEDIATE RELEASE
September 11, 2009
Media Contact:
LaJuan Williams-Dickerson
Office (202) 898-3876
Email: lwilliams-dickerson@fdic.gov

Venture Bank, Lacy, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Venture Bank.

The eighteen branches of Venture Bank will reopen during normal business hours beginning tomorrow as branches of First-Citizens Bank & Trust Company. Depositors of Venture Bank will automatically become depositors of First-Citizens Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until First-Citizens Bank & Trust Company can fully integrate the deposit records of Venture Bank.

This evening and over the weekend, depositors of Venture Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of July 28, 2009, Venture Bank had total assets of $970 million and total deposits of approximately $903 million. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase approximately $874 million of the assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and First-Citizens Bank & Trust Company entered into a loss-share transaction on approximately $715 million of Venture Bank's assets. First-Citizens Bank & Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-430-7974. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/venture-wa.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $298 million. First-Citizens Bank & Trust Company's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Venture Bank is the 92nd FDIC-insured institution to fail in the nation this year, and the third in Washington. The last FDIC-insured institution closed in the state was Westsound Bank, Bremerton, on May 8, 2009.

# # #

another shoe -- #91

Press Releases
CorTrust Bank, National Association, Mitchell, South Dakota, Assumes All of the Deposits of Brickwell Community Bank, Woodbury, Minnesota

FOR IMMEDIATE RELEASE
September 11, 2009
Media Contact:
LaJuan Williams-Dickerson
(202) 898-3876
Email: lwilliams-dickerson@fdic.gov

Brickwell Community Bank, Woodbury, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CorTrust Bank, N.A., Mitchell, South Dakota, to assume all of the deposits of Brickwell Community Bank.

The sole branch of Brickwell Community Bank will reopen on Saturday as a branch of CorTrust Bank. Depositors of Brickwell Community Bank will automatically become depositors of CorTrust Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until CorTrust Bank can fully integrate the deposit records of Brickwell Community Bank.

This evening and over the weekend, depositors of Brickwell Community Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of July, 24, 2009, Brickwell Community Bank had total assets of $72 million and total deposits of approximately $63 million. CorTrust Bank will pay the FDIC a premium of 0.10 percent to assume all of the deposits of Brickwell Community Bank. In addition to assuming all of the deposits of the failed bank, CorTrust Bank agreed to purchase essentially all of the assets.

The FDIC and CorTrust Bank entered into a loss-share transaction on approximately $65 million of Brickwell Community Bank's assets. CorTrust Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about today's transaction can call the FDIC toll-free at 1- 800-815-0268. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/brickwell-mn.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22 million. CorTrust Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Brickwell Community Bank is the 91st FDIC-insured institution to fail in the nation this year, and the third in Minnesota. The last FDIC-insured institution closed in the state was Mainstreet Bank, Forest Lake, on August 28, 2009.

a shoe falls

Press Releases
MB Financial Bank, National Association, Chicago, Illinois, Assumes All of the Deposits of Corus Bank, National Association, Chicago, Illinois

FOR IMMEDIATE RELEASE
September 11, 2009
Media Contact:
LaJuan Williams-Dickerson
Office (202) 898-3876
Email: lwilliams-dickerson@fdic.gov

Corus Bank, National Association, Chicago, Illinois, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank, N.A.

The eleven branches of Corus Bank will reopen on their next normally scheduled business day as branches of MB Financial Bank. Depositors of Corus Bank will automatically become depositors of MB Financial Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until MB Financial Bank can fully integrate the deposit records of Corus Bank.

This evening and over the weekend, depositors of Corus Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of June 30, 2009, Corus Bank had total assets of $7 billion and total deposits of approximately $7 billion. MB Financial Bank will pay the FDIC a premium of 0.2 percent to assume all of the deposits of Corus Bank. In addition to assuming all of the deposits of the failed bank, MB Financial Bank agreed to purchase approximately $3 billion of the assets, comprised mainly of cash and marketable securities. The FDIC will retain the remaining assets for later disposition. The FDIC plans to sell substantially all of the remaining assets of Corus Bank in the next 30 days in a private placement transaction.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-823-5017. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/corus.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.7 billion. MB Financial Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Corus Bank is the 90th FDIC-insured institution to fail in the nation this year, and the sixteenth in Illinois. The last FDIC-insured institution closed in the state was Platinum Community Bank, Rolling Meadows, on September 4, 2009.

# # #

Nothing Yet

Nothing yet from the FDIC. "The talk" is that Corus Bank is going down.


MB Financial to take over Corus Bank branches
By: Steve Daniels Sept. 11, 2009

(Crain’s) — MB Financial Inc. will assume the branches and deposits of Corus Bank, the long-troubled Chicago-based condominium development lender that will be seized at the end of business Friday by federal regulators, according to a person familiar with the matter.

Most of the assets of Corus, made up primarily of delinquent condo loans spread throughout the U.S., will be sold by the Federal Deposit Insurance Corp. in the next few weeks, according to this person. Several private-equity firms and real estate outfits are lined up to bid for those assets, according to numerous published reports.

Chicago-based MB Financial, with more than $8 billion in assets and over 70 branches in the city and suburbs, will add Corus’ 11 branches to its network. It’s also expected to assume less than $1 billion of Corus’ $7 billion in deposits, most of which are high-interest-rate certificates of deposits sold over the Internet.

An MB Financial spokeswoman didn’t immediately return a call seeking comment.


The deal for Corus is a coup for MB Financial CEO Mitchell Feiger, who has been the most aggressive Chicago banker in bidding for the branches, deposits and assets of failed lenders.

While the quality of Corus’ overall deposit base isn’t strong, many of its branch locations are in choice neighborhoods like Lincoln Park, Lakeview and Lincoln Square.

Only a week ago, MB Financial assumed the deposits, branches and assets of failed InBank of Oak Forest, but that lender is a fraction of Corus’ size.

While the writing has been on the wall for Corus for months, its failure marks the end finally for the Glickman family, which until recently owned about half the bank’s stock and effectively controlled the bank and its predecessors since the 1960s.

Robert Glickman, who resigned as CEO earlier this year and has been liquidating his ample stock holdings at well below $1 per share ever since, put the bank on its current course by aggressively lending to developers of splashy, high-end condo projects in some of the country’s hottest real estate markets.

Mr. Glickman gambled that a substantial cash and securities cushion would protect his bank from any real estate downturn, but the current meltdown far exceeded his expectations and made Corus a national poster child for reckless risk-taking in banking.

Waning Influence

America and eastern Europe
End of an affair?

Sep 10th 2009
From The Economist print edition
The Atlantic alliance is waning in Europe’s east



AFTER two decades of sometimes fervent Atlanticism in the ex-communist world, disillusionment (some would call it realism) is growing. At its height the bond between eastern Europe and America was based, like the best marriages, on a mixture of emotion and mutual support. The romance dates from the cold war: when western Europe was sometimes squishy in dealing with the Soviet empire, America was robust. When the Iron Curtain fell, ex-dissidents and retired cold warriors found they had plenty in common. America pushed for the expansion of NATO, guaranteeing the east Europeans’ security. In return, ex-communist countries loyally supported America, particularly in providing troops for wars in Iraq and Afghanistan.

That relationship is now looking more wobbly. A new poll (see chart) by the German Marshall Fund, a think-tank, shows that western Europe is now much more pro-American and pro-NATO than the ex-communist east. Until last year, the eastern countries swallowed their misgivings about George Bush, while the west of the continent writhed in distaste at what many saw as his administration’s incompetence and heavy-handedness.

The ascent of Barack Obama has boosted America’s image in most countries, but only modestly in places like Poland and Romania. Among policymakers in the east, the dismay is tangible. In July, 22 senior figures from the region, including Vaclav Havel and Lech Walesa, wrote a public letter bemoaning the decline in transatlantic ties.

One reason is that the Obama administration is rethinking a planned missile-defence system, which would have placed ten interceptor rockets in Poland and a radar station in the Czech Republic, in order to guard against Iranian missile attacks on America and much of Europe. That infuriated Russia, which saw the bases as a blatant push into its front yard. Changing the scheme—probably using seaborne interceptors—risks looking like a climb-down to suit Russian interests.

Poland is also worried that a promised battery of Patriot air-defence missiles, originally to protect the interceptors, may now be only a temporary loan of dummy rockets for training purposes—“just a sales exercise”, says an official in Warsaw, crossly. America says it never intended to station real rockets there permanently.

The administration also botched its participation in Poland’s 70th anniversary commemoration of the start of the second world war on September 1st. Other countries, including Russia and Germany, sent top people. America, initially, offered only a retired Clinton-era official. William Perry, who was a notable sceptic about NATO expansion. After squawks of dismay, Jim Jones, the national security adviser, went too. But Poles sensed a snub.

Another sore point concerns leaks from America suggesting that Poland, Romania and Lithuania hosted secret bases for the “rendition” and interrogation of terror suspects. All three strongly deny this, but in at least some voters’ eyes, the American alliance is now tainted with connivance in kidnap and torture, followed by cover-ups. The next time American spooks want some secret help, they may find their allies less handy, an official notes.

NATO’s credibility is under scrutiny too. New members say that their voters will not support out-of-area expeditions—the alliance’s big focus just now—unless it is properly defending the home front against any threat from Russia. It does not help that Russia and its ally, Belarus, have just started a large joint military exercise, ostentatiously named “Zapad” (West).

At a big NATO advisory conference in Brussels in July, east Europeans were aghast to hear one prominent German academic describe Article V, the alliance’s cornerstone collective-security guarantee, as a “fiction”. In the event of a Russian threat, say to the Baltic states or Poland, would NATO act or merely consult? A worried easterner describes the alliance as “like an 18th-century Polish parliament, hostage to its most irresponsible member”.

NATO is trying to soothe those fears. A committee that writes the threat assessment has rejigged its view on Russia. Contingency planning, once taboo, is taking shape. The Obama administration has been more vigorous on this front than its predecessor. But what Poland wants, especially if the missile-defence base is cancelled, is practical preparations, such as regular manoeuvres, and fuel and ammunition stockpiles.

Part of the problem is the much-publicised attempt by the Obama administration to “reset” relations with Russia. Few in eastern Europe object to that in principle. But many worry about how it will work in practice. Will Russia demand greater sway in the region in return for help, say, in squeezing Iran? The State Department has tried hard to reassure America’s allies. But the official at the National Security Council directly responsible for Europe, Liz Sherwood-Randall, used to work for Mr Perry and shared his views on NATO expansion. East European officials flinch when her name is mentioned.

Admittedly, America has many other bigger problems than its relations with eastern Europe. Self-importance and public whingeing do not win arguments in Washington. The east Europeans may have been naive in their dealings with America in the Bush years. But for all that, even people inside the Obama administration agree that it could do better

Income and Poverty Data

2009 16:03
The depressing income and poverty data
Comments (2)
Posted by: Felix Salmon
Tags: economics, economics

There’s no good news in today’s data from the Census bureau. Unless you’re the kind of person who worries about inflation, that is: in that case you’re probably reassured that real median household income fell 3.6% between 2007 and 2008, from $52,163 to $50,303. That’s a drop of over $1,800: real money.

Naturally, the pain was concentrated in the poorer parts of the US: incomes in the South fell by 4.9% to $45,590, while incomes in the Northeast were unchanged at $54,346.

Oh, and the number of people in poverty increased by a whopping 2.5 million, to 39.8 million: 13.2% of the population, the highest poverty rate in over a decade. How poor do you need to be in order to be counted as living in poverty? Very poor:

As defined by the Office of Management and Budget and updated for inflation using the Consumer Price Index, the weighted average poverty threshold for a family of four in 2008 was $22,025; for a family of three, $17,163; for a family of two, $14,051; and for unrelated individuals, $10,991.

The poverty rate for children under the age of 18 is now an eye-popping 19%: basically one child in every five is living in poverty in the US. And even if a slow economic recovery is beginning to take hold, I can’t see that number declining much in the foreseeable future. Which is unconscionable, in the richest country in the world.

Update: Emily Monea and Isabel Sawhill of the Brookings Institution have a paper out which says that “the poverty rate will increase rapidly through 2011 or 2012, at which point about 14.4 percent of the country will be in poverty”, and that the number of children living in poverty could rise by 5 million, or 38%, to 18 million.

Update 2: David Leonhardt points out that real incomes fell over the course of the past decade, from $51,295 in 1998 to $50,303 in 2008:

In the four decades that the Census bureau has been tracking household income, there has never before been a full decade in which median income failed to rise. (The previous record was eight years, ending in 1986.) Other Census data suggest that it also never happened between the late 1940s and the late 1960s. So it doesn’t seem to have happened since at least the 1930s.

Job Outlook down

Job outlook hits worst-ever level
Employers' hiring plans at lowest point in Manpower survey's history


By Andrea Coombes, MarketWatch

SAN FRANCISCO (MarketWatch) -- Employers' hiring plans for the upcoming fourth quarter dropped to their lowest level in the history of Manpower's Employment Outlook Survey, which started in 1962.

A net -3% of employers said they'll hire in the fourth quarter, down from -2% in the third quarter, on a seasonally adjusted basis, according to the Milwaukee-based firm's survey of more than 28,000 employers. Before this year, the survey's previous low point was a net 1% hiring outlook for the third quarter of 1982.
'Green jobs' adviser resigns

After becoming embroiled in a controversy over past inflammatory statements, Van Jones, President Barack Obama's adviser on "green jobs," stepped down. Courtesy of Fox News.

A year ago, a seasonally adjusted net 9% of firms said they would hire in the fourth quarter. The Manpower survey measures the percentage of firms planning to hire minus those intending layoffs. Manpower doesn't measure the number of jobs. The survey's margin of error is +/- 0.49%.

There was one positive sign in the survey: 69% of employers said they planned no change in their hiring plans, up from 67% in the third quarter and 59% in the fourth quarter a year ago (those figures are not seasonally adjusted).

That's "a very high number for our outlook survey," said Jonas Prising, president of the Americas for Manpower. That figure generally hovers at 55% or 56% in a strong economy, he said, noting that the higher figure currently signifies a high degree of stability, and "that is a precursor to growth, he said.

"Employers really want to hold onto the work forces that they have if at all possible," Prising said. Still, "there will clearly be challenges for job seekers and employers into the fourth quarter."

Separately, the U.S. Labor Department said the economy lost 216,000 jobs in August, the 20th consecutive monthly decline. The unemployment rate jumped to a 26-year high of 9.7%. Since the recession began in December 2007, unemployment has increased by 7.4 million to a total of 14.9 million. See full story.
Industry outlook

Looked at by industry, eight sectors showed a negative hiring outlook for the fourth quarter. In January, Manpower changed its industry classifications; because of that change, it currently can't provide seasonally adjusted figures by industry.

Only one of the 13 industry categories surveyed showed an improvement from the third quarter: A net 2% of employers in the education and health-services category planned to hire, up from -4% in the previous quarter. Firms in the wholesale and retail trade category were the most optimistic, with a net 7% planning to hire. Still, that was a decline from a 9% outlook for that sector in the third quarter. See where there are jobs in this economy.

And hiring plans for all of the industries are at much lower levels than are normal in a strong economy. "For any of these sectors in a good economy a net employment outlook would be around the low 20s," Prising said.

For each industry, here are the figures for the net employment outlook for the fourth quarter, not seasonally adjusted, in order of most negative outlook first.

*

Construction, -10%, down from 2% for the third quarter
*

Mining, -9%, flat from -9%
*

Transportation and utilities, -9%, down from -3%
*

Government, -8%, down from -4%
*

Manufacturing, durable goods, -8%, down from -6%
*

Information, -5%, down from -4%
*

Manufacturing, nondurable goods, -3%, down from 0%
*

Other services, -1%, down from 0%
*

Financial activities, 1%, down from 2%

*

Education and health services, 2%, up from -4%
*

Leisure and hospitality, 2%, down from 18%
*

Professional and business services, 3%, down from 8%
*

Wholesale and retail trade, 7%, down from 9%

By region

For its regional analysis, Manpower divides the U.S. into four areas. For each region, here is the seasonally adjusted net employment outlook for the fourth quarter:

Northeast, -5%, down from 0% in the third quarter. Manpower counts the following states in this region: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont.

Midwest, -3%, down from -2% in the third quarter. Manpower counts the following states in this region: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin.

West, -3%, flat from -3% in the third quarter. Manpower counts the following states in this region: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming.

South, 0%, up from -2% in the third quarter. Manpower counts the following as part of this region: Puerto Rico and Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia.
Industry breakdown

Here's a breakdown of what types of jobs fall into which industry category (industries are in alphabetical order):

*

Construction. Residential and commercial builders; heavy construction (i.e. highways, pipelines); general and specialty trade contractors (plumbing/painting/electrical, etc.).
*

Education and health services. Elementary and secondary schools; colleges and universities; vocational-technical schools; libraries; hospitals, clinics, home health care.
*

Financial activities. Savings, lending institutions (banks, savings & loans, credit unions); insurance companies; investment firms; financial planners; credit agencies; real estate.
*

Government. City and county government; court systems; correctional institutions; police and fire departments.
*

Information. Internet service providers; television/radio broadcasters; newspaper publishers; book publishers; software publishers; motion picture production; sound recording; cable television.
*

Leisure and hospitality. Hotels, motels; casinos; entertainment facilities; amusement and recreational facilities.
*

Manufacturing -- durable goods. Stone, clay and concrete products; motor vehicles and machinery; electrical products and appliances; iron, steel and metal products; furniture and wood products.
*

Manufacturing -- nondurable goods. Food and beverage producers; textile mill products; clothing; leather products; paper and paper products; commercial printers; plastics, rubber, drug and chemical products; petroleum refining.
*

Mining. Metals mining; coal mining; petroleum and natural gas extraction; stone, sand and gravel quarries.
*

Other services. Equipment/machinery repair; dry cleaning, laundry; personal care (hair, massage, nails); pet care; photofinishing; funeral homes/mortuaries; social services; membership organizations.
*

Professional and business services. Business services (accountants, lawyers, engineers, computer and data processing); permanent employment agencies; car and truck rental agencies.
*

Transportation and utilities. Passenger transport (air, bus, rail); freight transport (air, truck, rail); warehousing; telephone; electric, gas, water, sewer utilities; postal service.
*

Wholesale and retail trade. Wholesale dealers and distributors; department stores, warehouse clubs; catalog and mail-order houses; auto and truck dealers; building materials retailers; fuel oil dealers and gasoline stations; grocery stores; restaurants.

Andrea Coombes is an assistant personal finance editor for MarketWatch, based in San Francisco.

"Holy Crimes"

Once again, from Joe. My. God., another delightful edition of "This Week In Holy Crimes" -- it's just amazing how funny those madcap Priests and Pastors are -- never mind the recurring theme of "Youth Pastors Gone Wild" (not this week though).

Now, for your enjoyment:



Monday, September 07, 2009
This Week In Holy Crimes

Over the last seven days...

Minnesota: Pastor John Kameron Erbele busted in prostitution sting.
Nevada: Pastor Ladislao Morales charged with molesting a 10 year-old girl.
Florida: Pastor Robert Riddle charged with defrauding his church of $200K. Riddle was previously convicted of stealing $70K from a 91 year-old congregant.
Wisconsin: Father James Blume charged with sexually assaulting a 12 year-old boy in 1978. Blume has been sued numerous times in various jurisdictions for similar crimes.
Texas: Pastor Rodney Terrell charged with grand theft for using the "Nigerian check scam" to defraud parishioner.
Manitoba: Father Raju Madanu charged with breaking and entering his own church to steal a "considerable amount of cash."
Illinois: Father Wayne E. Wigglesworth arrested for picking up a 15 year-old boy in an internet chat room.
Georgia: A Hindu temple has declared bankruptcy after its leader, Dr. Commander Selvam, was arrested for credit card fraud and practicing medicine without a license.
North Carolina: Pastor Johnnie Ray Lewis charged with embezzling $22K from his church.
Florida: Pastor Clevon Ghent charged with child molestation for having multiple three-ways with his adult nephew and a 12 year-old girl.
South Africa: An unnamed archbishop has been arrested for raping two girls aged 10 and 13. Bonus: The archbishop has been divorced nine times.
Ohio: Father Patrick O'Connor charged with molestation of teenage boy. O'Connor was suspended from 2003-2007 while similar charges were investigated.
Washington: Victims of Pastor Robbin Harper win $574K settlement for child molestation. Last year Harper was sentenced to 26 years in prison for child rape and assault.
Delaware: Pastor Timothy J. McDorman sentenced to two years in prison for possession of child pornography and having sex with underage girl.
Montana: The Jesuit Society of Jesus has filed for bankruptcy after paying out more than $25M in child molestation settlements. An organization for children molested by priests claims the bankruptcy is a ploy to discourage more victims from coming forward.

This week's winners-
Colorado: Pastor John Smoker charged with abuse of the mentally disabled. Smoker is accused of blindfolding and dumping garbage on a mentally-challenged man after becoming angry that the victim had not cleaned a church bus to his satisfaction. And at the church's school, Silver State Christian Principal Daniel Brock is under arrest for allegedly fondling several male students. It was a busy week for Red Rocks Baptist Church

WOW!

I thought keeping track of bank failures would be a simple thing -- something to tut-tut about.

I did not think the number of FDIC seized banks would grow week to week. It's reaching the point where it actually frightens me.

The talk is about "recovery" while the unemployment rate goes up, banks fail in greater numbers, and FDIC seems to be running out of money.

There's talk about a "double-dip" recession, prosperity has not reached Main Street, and Wall Street seems to be going back to its old habits -- can you say Scary S**t?

#89

Press Releases
Sunwest Bank, Tustin, California, Assumes All of the Deposits of First State Bank, Flagstaff, Arizona

FOR IMMEDIATE RELEASE
September 4, 2009
Media Contact:
David Barr
Office: (202) 898-6992
Cell: (703) 622-4790
Email: dbarr@fdic.gov

First State Bank, Flagstaff, Arizona, was closed today by the Arizona Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all of the deposits of First State Bank.

Due to the Labor Day holiday, the six branches of First State Bank will reopen on Tuesday as branches of Sunwest Bank. Depositors of First State Bank will automatically become depositors of Sunwest Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until Sunwest Bank can fully integrate the deposit records of First State Bank.

This evening and over the weekend, depositors of First State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of July 24, 2009, First State Bank had total assets of $105 million and total deposits of approximately $95 million. In addition to assuming all of the deposits of the failed bank, Sunwest Bank agreed to purchase essentially all of the assets.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-537-4048. The phone number will be operational this evening until 9:00 p.m., Mountain Standard Time (MST); on Saturday from 9:00 a.m. to 6:00 p.m., MST; on Sunday from noon to 6:00 p.m., MST; and thereafter from 8:00 a.m. to 8:00 p.m., MST. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/firststate-az.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $47 million. Sunwest Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. First State Bank is the 89th FDIC-insured institution to fail in the nation this year, and the third in Arizona. The last FDIC-insured institution closed in the state was Union Bank, National Association, Gilbert, on August 14, 2009.

#88

Press Releases
FDIC Approves the Payout of Insured Deposits of Platinum Community Bank, Rolling Meadows, Illinois

FOR IMMEDIATE RELEASE
September 4, 2009
Media Contact:
David Barr
Office: 202-898-6992
Cell: 703-622-4790
e-mail: dbarr@fdic.gov

The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of Platinum Community Bank, Rolling Meadows, Illinois. The bank was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver.

The FDIC will mail customers checks for their insured funds on Tuesday, September 8. Platinum Community Bank, as of August 29, 2009, had total assets of $345.6 million and total deposits of $305.0 million.

The FDIC entered into an agreement with MB Financial Bank, National Association, to accept the failed bank's direct deposits from the federal government, such as Social Security and Veterans' payments. Customers must use MB Financial's branch located at 2251 Plum Grove, Palatine, Illinois, to access their federal government direct deposits.

Customers who have questions about today's transaction can call the FDIC toll free at 1-800-640-2751. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 8:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/platinum-il.html.

Beginning Tuesday, depositors of Platinum Community Bank with more than $250,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage.

Platinum Community Bank is the 88th FDIC-insured institution to fail this year and the 15th in Illinois. The last bank to be closed in the state was Inbank, Oak Forest, earlier today. The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $114.3 million.

#87

Press Releases
Great Southern Bank, Springfield, Missouri, Assumes All of the Deposits of Vantus Bank, Sioux City, Iowa

FOR IMMEDIATE RELEASE
September 4, 2009
Media Contact:
David Barr
Office (202) 898-6992
Cell (703) 622-4790
Email: dbarr@fdic.gov

Vantus Bank, Sioux City, Iowa, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Great Southern Bank, Springfield, Missouri, to assume all of the deposits of Vantus Bank.

The 15 branches of Vantus Bank will reopen on Saturday with normal business hours as branches of Great Southern Bank. Depositors of Vantus Bank will automatically become depositors of Great Southern Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until Great Southern Bank can fully integrate the deposit records of Vantus Bank.

This evening and over the weekend, depositors of Vantus Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of August 28, 2009, Vantus Bank had total assets of $458 million and total deposits of approximately $368 million. In addition to assuming all of the deposits of the failed bank, Great Southern Bank agreed to purchase approximately $387 million of the assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and Great Southern Bank entered into a loss-share transaction on approximately $338 million of Vantus Bank's assets. Great Southern Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-405-1439. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/vantus.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $168 million. Great Southern Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Vantus Bank is the 87th FDIC-insured institution to fail in the nation this year, and the first in Iowa. The last FDIC-insured institution closed in the state was Hartford-Carlisle Savings Bank, Carlisle, on January 14, 2000.

#86

Press Releases
MB Financial Bank, National Association, Chicago, Illinois, Assumes All of the Deposits of InBank, Oak Forest, Illinois

FOR IMMEDIATE RELEASE
September 4, 2009
Media Contact:
David Barr
Office (202) 898-6992
Cell (703) 622-4790
Email: dbarr@fdic.gov

InBank, Oak Forest, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of InBank, except certain brokered deposits.

The three branches of InBank will reopen on Saturday as branches of MB Financial Bank, N.A. Depositors of InBank will automatically become depositors of MB Financial Bank, N.A. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until MB Financial Bank, N.A., can fully integrate the deposit records of InBank.

This evening and over the weekend, depositors of InBank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of August 3, 2009, InBank had total assets of $212 million and total deposits of approximately $199 million. In addition to assuming the deposits of the failed bank, MB Financial Bank, N.A., agreed to purchase essentially all of the assets.

MB Financial Bank, N.A., will purchase all of Inbank's deposits, except those from certain deposit brokers. The FDIC will pay these brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-640-2607. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/inbank.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66 million. MB Financial Bank, N.A.'s acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. InBank is the 86th FDIC-insured institution to fail in the nation this year, and the 14th in Illinois. The last FDIC-insured institution closed in the state was Mutual Bank, Harvey, on July 31, 2009.

#85

Press Releases
Great American Bank, De Soto, Kansas, Assumes All of the Deposits of First Bank of Kansas City, Kansas City, Missouri

FOR IMMEDIATE RELEASE
September 4, 2009
Media Contact:
David Barr
Office (202) 898-6992
Cell (703) 622-4790
Email: dbarr@fdic.gov

First Bank of Kansas City, Kansas City, Missouri, was closed today by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Great American Bank, De Soto, Kansas, to assume all of the deposits of First Bank of Kansas City.

The sole branch of First Bank of Kansas City will reopen on Saturday as a branch of Great American Bank. Depositors of First Bank of Kansas City will automatically become depositors of Great American Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until Great American Bank can fully integrate the deposit records of First Bank of Kansas City.

This evening and over the weekend, depositors of First Bank of Kansas City can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of June 30, 2009, First Bank of Kansas City had total assets of $16 million and total deposits of approximately $15 million. In addition to assuming all of the deposits of the failed bank, Great American Bank agreed to purchase all of the assets.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-430-6165. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/firstbankkc-mo.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6 million. Great American Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. First Bank of Kansas City is the 85th FDIC-insured institution to fail in the nation this year, and the second in Missouri. The last FDIC-insured institution closed in the state was American Sterling Bank, Sugar Creek, on April 17, 2009.

# # #

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,195 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

May Not Be Sustainable - Stiglitz

Bloomberg
Stiglitz Says U.S. Economic Recovery May Not Be ‘Sustainable’
By Michael McKee

Sept. 4 (Bloomberg) -- The U.S. economy faces a “significant chance” of contracting again after emerging from its worst recession since the 1930s, Nobel Prize-winning economist Joseph Stiglitz said.

“It’s not clear that the U.S. is recovering in a sustainable way,” Stiglitz, a Columbia University professor, told reporters yesterday in New York.

Economists and policy makers are expressing concern about the strength of a projected economic recovery, with Treasury Secretary Timothy Geithner saying two days ago that it’s too soon to remove government measures aimed at boosting growth.

Stiglitz said he sees two scenarios for the world’s largest economy in coming months. One is a period of “malaise,” in which consumption lags and private investment is slow to accelerate. The other is a rebound fueled by government stimulus that’s followed by an abrupt downturn -- an occurrence that economists call a “W-shaped’ recovery.

“There’s a significant chance of a W, but I don’t think it’s inevitable,” he said. The economy “could just bounce along the bottom.”

Stiglitz said it’s difficult to predict the economy’s trajectory because “we really are in a different world.” He said the crisis of the past year was made worse by lax regulation that allowed some financial firms to grow so large that the system couldn’t handle a failure of any of them.

Big Banks

“These institutions are not only too big to fail, they are too big to be managed,” he said.

Finance ministers and central bankers from the Group of 20 nations meet in London Sept. 4-5 to lay the groundwork for a summit in Pittsburgh later this month, where leaders will consider measures to overhaul supervision of the financial system...

With so much excess capacity, the American economy faces a short-term threat of disinflation and possibly deflation, Stiglitz said. Wages may even decline, given recent high productivity and the likelihood of an extended period of high unemployment, he said.

Longer term, he said the Fed’s aggressive monetary policy will mean inflation becomes the greater threat. “With the magnitude of the deficits and the balance sheet of the Fed having been blown up, it’s understandable why there are anxieties about inflation,” he said.

While the Fed says it has the tools to deal with it, there are still concerns, Stiglitz said. Because monetary policy takes six to 18 months to have its full effect, the central bank will have to begin withdrawing monetary stimulus on the basis of forecasts.

The Fed’s record on its economic forecasts isn’t enough to reassure investors and, as a result, the U.S. currency may suffer, he said.

Dollar ‘Weakness’

“Whether or not they’re able to do it, the uncertainty today about whether they can do it can contribute to the weakness of the dollar,” Stiglitz said. “That’s one of the reasons there is increasing interest around the world in discussing alternatives to the dollar system.”

Stiglitz, who is a member of a United Nations commission that will study the global financial system and currency regimes, said “the logic is compelling” for a new global currency.

The current system creates instability, weakens global confidence, and is fundamentally unfair to developing countries that are in essence lending the U.S. trillions of dollars and bearing the risk, he said.

“In most quarters, there is a feeling we should move away from the dollar system. The question is do we do it in an orderly way, or a chaotic way,” Stiglitz said. “The size of the deficit and the size of the balance sheet of the Fed have just increased the anxiety and the desire that something be done.”

While some think it would hurt the U.S. to no longer be able to borrow cheaply in dollars, “that era is over,” he said. “We’re moving to a more multi-polar world.”

Between the fall of the Berlin Wall and the collapse of Lehman Brothers was “the short period of American triumphalism, where we dominated the global scene. That period is over,” Stiglitz said.