For those of you working on accelerated filers, you’re probably counting down the days hours until Monday’s deadline for the second quarter.
So, if you’ve already filed, make all the other workhorses out there jealous by telling us where you’re going to happy hour the rest of the week.
If you’re working down to the wire, let us know what color your sleeping bag is or where you’ll be ordering take out. Or maybe how many days you’ve been wearing the same shirt. Has anyone put in 40 hours this week yet? You get the idea. All right, now get back to it. Regulators are waiting…
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Deloitte Study Says That Half of You Aren’t Scared of Swine Flu. Tell That to a Backstreet Boy
Dammit people, this is serious. Deloitte is doing studies for crying out loud. Yet, over half of you still aren’t completely freaking the hell out over swine flu.
Ordinarily, we’d let this slide by but it doesn’t seem to be a typical Tuesday, so we’ll ask that you bear with us.
How about one of the finest entertainers on the planet getting the H to 1 to the N to the 1? Will this convince you that this needs to be taken seriously?
When a member of a heartthrob boy band that, for all intents and purposes, has been annihilated from popular culture altogether is affected, doesn’t that cause you to stop and think?
Deloitte studies, fine, those are totally meaningless. We’re talking a step below D-List celebrities getting sick. Please reconsider your indifference.
Swine Flu Preparedness: Consumer Pulse Study Fact Sheet [Deloitte Center for Health Solutions]
The FDIC May Have to Seize Itself
Editor’s note: Adrienne Gonzalez is founder and managing editor of Jr Deputy Accountant as well as regular contributor to leading financial/investment sites like Seeking Alpha and GoldmanSachs666. By day, she teaches unlicensed accountants to pass the CPA exam, though what she does in her copious amounts of freetime in the evening is really none of your business. Follow her adventures in Fedbashing and CPA-wrangling on Twitter @adrigonzo but please don’t show up unannounced at her San Francisco office as she’s got a mean streak. Her favorite FASB is 166.
In honor of Bank Fail Friday, let’s take a look at our doubt over the FDIC continuing as a going concern. Sure, we know it’s technically a government agency and therefore not subject to the same sorts of worries as public companies but there is certainly something brewing here.
We are not in the business of auditing the financial statements of the FDIC, even if they provided such information. Frankly, if they did, we really aren’t equipped to analyze said statements. Be that as it may, you don’t need to be an expert to see that the FDIC is in a whole shit ton of trouble (yes, that is our qualified opinion).
More, after the jump
Remember Colonial Bank? Surely Sheila Bair has been up late since the news broke on Monday that they’d cooked their books, or something about TARP fraud (though the bank never received TARP funds after that TBW deal for $300 million fell through Friday). Maybe it was undercapitalization? Who keeps track of these things?
Anyway, the point here is that the FDIC well has run dry and there’s no magically conjuring up a Treasury line of credit. While Congress has offered up a $500 billion “line of credit” to our friends at the FDIC, that money technically does not exist. (Psst: hate to break it to Congress but yours truly is only a tad concerned that there may be trouble in the bond market ahead).
I’m no mathlete but this should be fairly simple to understand:
Colonial has about $25.5 billion in assets, while the FDIC has about $13 billion remaining in the fund. According to Sheila’s math, new FDIC fees levied against Too Big to Fail will net the fund about $27 billion this year. To put this into perspective, the FDIC lost $33.5 billion in 2008 to cover 25 bank failures. Add it up, as we’ve had 69 bank failures in 2009 to date. Carry the 1 and I believe we arrive at the following figure: the FDIC is screwed.
Like I said, someone might want to check my numbers but it doesn’t look good.
I could also point out that perhaps the FDIC should have chosen the “proactive” route and collected insurance premiums for the last 10 years instead of assuming the good times would last forever but again, not my jurisdiction.
Disclosure: the author has long since diversified her “investments” in the First National Bank of Her Mattress, thankyouverymuch.
Ladies, Forget the Career and Accomplish the Important Goals Like Finding a Man
I can't even. Can't. Tried, read it a few times just to make sure I […]