* WASHINGTON (7/7/08)--The Federal Deposit Insurance Corp. has sent a financial institution letter
to banks regarding other real estate. “Continued weakness in the housing market and the rapid rise in foreclosures have increased the potential for higher levels of other real estate (ORE) held by FDIC-supervised institutions,” the agency said. “The letter reminds bank management of the importance of developing and implementing policies and procedures for acquiring, holding, and disposing of other real estate” ... * WASHINGTON (7/7/08)--Treasury Secretary Henry Paulson is backing an idea to create a receivership mechanism for investment banks that fail. A resolution process that helps the financial system curb the failure of a large firm is needed, he said (American Banker
July 3). His comments match those made by Federal Deposit Insurance Corp. Chairman Sheila Bair, who two weeks ago said investment firms should have receivership processes similar to ones used by commercial banks. Paulson testifies Thursday in front of the House Financial Services Committee with Federal Reserve Board Chairman Ben Bernanke regarding the need for regulatory reform ... * WASHINGTON (7/7/08)--The Office of Thrift Supervision (OTS) has rejected Sen. Charles Schumer’s (D-N.Y.) request for data on IndyMac Bancorp (American Banker
July 3). Schumer had asked the agency to provide him with information regarding his concerns about IndyMac’s solvency. IndyMac said Monday that depositors removed $100 million from the company when news of Schumer’s request surfaced. Schumer said the company’s problems result from management. OTS said it is in control of IndyMac’s condition ... * WASHINGTON (7/7/08)--The Treasury Department last week sent out 10.025 million economic stimulus payments to households, totaling $7.775 billion. So far, the department has sent out 104.875 million payments, totaling $86.079 billion. Payments will continue through mid-July ... * WASHINGTON (7/7/08)--Recovery of the financial market will likely be slow, Federal Reserve Board Gov. Frederic Mishkin said Wednesday (American Banker
July 3). The markets are showing signs of progress, but a quick comeback is not likely, he told an economic forum in Israel. The troubled housing market has caused a weak labor market and consumers are struggling to obtain credit, he said. Mishkin will leave the Fed in August to return to Columbia University ...