Obama, the FDIC, and private capital

[Skip to the end]

The FDIC claims the banks are solvent, and valuing their portfolios as required by law, or they could close them down as they are charged to do, also by law.

If Obama believes his FDIC officers and bank examiners are liars, he should take action against them at once.

If he believes the FDIC to be capable and truthful, then what is this about:

Obama Says US Has ‘No Easy Out’ of Banking Crisis

by Edwin Chen

Feb 10 (Bloomberg) — Some banks haven’t been transparent about assets on their books, Obama said. Now they must “just be clear about some of the losses that have been made, because until we do that we’re not going to be able to attract private capital into the marketplace.”

And the emphasis now seems to be on attracting private capital, hence with this claimed reason banks aren’t raising private capital.