BRUCE E. W.

Time to Put the Banks in Place: Use Put Options to Purchase Stocks

I am interested in similar ideas for the FDIC to somehow create a public offering to cover the mortgage debts of otherwise well intentioned middle America community banks. I can't understand how the FDIC can continue to bankrupt itself selling assets for pennies on the dollar and bankrupting shareholders with the same move, while taking on public debt by completely paying off all the defaults. Why isn't there more discussion on how this massive failure rate (utilizing the current system that was devised prior to understanding the current situation) could be restructured as a distribution of investment in the future asset of a newly healed bank that had a previously good track record. If the public can decide what bank (buying out its default portfolio with public offering) is worth investing into, the FDIC would spread the cost of bailout among willing investors instead of putting a wrecking ball to the whole structure and sending the bill to the taxpayers in the future (who had no part in the problem and get no return for their part in the price of containment). It seems to me that we have some great business minds and some truthfully good bankers (somewhere...M&T Bank CEO made some intelligent discussions happen in the past 6 months), so where is the creative innovation. Has everyone bought into this stupid truism of creative destruction?
There has got to be better ways to save community minded regional banks like BankUnited (Fl) and Guarantee Financial Group (Tx) that have actually served the people rather than these megatrend self serving monsters like Goldman who do nothing but help themselves to the public till and serve themselves rich helpings of counterfeit wealth which they float into a false economy that they perpetuate on the rest of us. Hello? is anybody alive out there? Do we have any real honest talant out there willing to say something original? Beam me up Scotty...there's no intelligent life down here afterall.....