Rattner blames political obstruction of FDIC Chairwoman Sheila Bair.
And the FDIC was created to insure deposits against banks using them as chips on a dangerous speculative betting table.
“The proportion of banks that were unprofitable fell to 8.4 percent from 10.6 percent a year earlier,” the FDIC reported.
The investigation was originally started by the FDIC and the Utah Department of Financial Institutions.
Two weeks later, the FDIC seized Washington Mutual and wiped out the bondholders.
Investment banks, however, got FDIC backing this time around, just by changing their name.
None of the banks seized by the FDIC received any TARP funds, for instance.
In which case, the FDIC will end up paying out on the insurance for overpriced assets.
And the FDIC is out the difference between 85 cents and the ultimate sale price of the assets.
The FDIC would get the securities and sell them; its losses would depend on the price it can get.