Extending the law that provides unlimited deposit insurance on non-interest bearing demand deposits would send a signal that just maybe the industry is not fully healthy and still needs support.
A legal fight between Lehman Brothers Holdings Inc. and J.P. Morgan Chase & Co. over claims that the bank illegally siphoned billions of dollars from Lehman in the weeks before its collapse illustrates what happens when the “shadow” banking system runs headlong into bankruptcy court. Read the Daily Bankruptcy Review article here.
Last October, I wrote a post entitled "Robosigning 2.0" that discussed some job ads for outsourced OCC foreclosure reviews. I predicted based on the job ad qualifications that the foreclosure reviews would be nothing other than a whitewash.
