cryptogon.com

The FDIC is looking to bring back 25 retirees from its division of resolutions and receiverships. Many of these agency veterans likely worked for the FDIC during the late 1980s and early 1990s, when more than 1,000 financial institutions failed amid the savings-and-loan crisis.

FDIC spokesman Andrew Gray said the agency was looking to bulk up “for preparedness purposes.” The division now has 223 employees, mostly based in Dallas.

The agency, which insures accounts at more than 8,000 financial institutions, is also seeking to hire an outside firm that would help manage mortgages and other assets at insolvent banks, according to a newspaper advertisement.

In public, policy makers are debating what role the government should play in trying to stabilize the housing market and minimize foreclosures. Meanwhile, regulators have worked discreetly behind the scenes to closely monitor the growing number of troubled banks and thrifts considered at risk.

“Regulators are bracing for well over 100 bank failures in the next 12 to 24 months, with concentrations in Rust Belt states like Michigan and Ohio, and the states that are suffering severe housing-market problems like California, Florida, and Georgia,” said Jaret Seiberg, Washington policy analyst for financial-services firm Stanford Group.

In job postings on its Web site, the FDIC said it is looking for people with “skill in performing duties associated with a financial-institution closing, such as receivership management, resolutions and/or asset disposition; knowledge of the resolutions process as it relates to complex financial institutions.” Such positions would require “very frequent overnight travel,” the posting said, and would pay up to $180,770.

“The notion of bringing back some people who have been through it before is very smart,” said William Isaac, who was FDIC chairman from 1981 until 1985. All told, the FDIC has roughly 4,600 employees, far fewer than the about 15,000 it had as recently as 1992.

On Sunday, the FDIC ran a newspaper ad seeking companies that could service commercial loans, mortgages and student loans in the event of a bank failure. It didn’t say how much a company could earn in this area.

The pegs restrict the Gulf’s ability to fight inflation by forcing them to shadow U.S. monetary policy at a time when the Fed is cutting rates to ward off recession and Gulf economies are surging on a near five-fold jump in oil prices since 2002.

Rifts are growing across the world’s top oil-exporting region on how to tackle inflation which hit a 27-year peak of 7 percent in Saudi Arabia in January and a 19-year peak of 9.3 percent in the United Arab Emirates in 2006, the most recent figure.

“In the short term free floating … will not fully dissipate inflationary pressure, although it would significantly do so,” Greenspan told an investment conference in Jeddah, Saudi Arabia’s second-largest city.

Saudi and UAE central bank chiefs spoke in favor on Monday of retaining dollar pegs, while Qatar’s prime minister advocated regional currency reform to avert possible unilateral revaluations designed to curb inflation.

“The economies of the Gulf and the United States are completely out of sync and that is exposing the shortcomings of the dollar peg,” said Simon Williams, Middle East economist at HSBC Holdings Plc in Dubai.

Across much of the nation, home values are dropping — even those backed by solid mortgages — and banks are repossessing more every day. Most experts say the dive won’t hit bottom for another year and only after excess inventory is sharply reduced and credit markets improve.

More government intervention may be needed, too, if the free market system doesn’t work quick enough.

“The housing value crisis is spreading and deepening,” said David Abromowitz, a senior fellow at the Center for American Progress. “It has gone way beyond subprime borrowers stretched too far with bad loans and now has clearly extended into the housing markets more broadly.”

Virtually everyone in South Florida had power by 5:30 p.m. and only about 40,000 customers around the state remained in the dark — mostly due to unrelated outages caused by a powerful cold front that is moving down the peninsula, officials said.

At its peak, the main power failure left as many as four million people without electricity in South Florida, along the Gulf Coast, in the Orlando area and elsewhere around the state, according to state officials.

The outage was caused by a fire at Florida Power & Light’s Flagami substation — not in the utility’s nuclear plant at Turkey Point, as reported earlier by some media outlets, FPL President Armando Olivera said during an evening news conference.

Both nuclear reactors at Turkey Point tripped off as a safety measure, taking a plant that supplies power to more than 450,000 homes almost instantly off-line and causing a shortage that affected other parts of the power grid, he said.

“We are going to make all of the army’s archives public so we can know the truth, to start building on a foundation of truth and justice,” said Mr Colom, who beat a right-wing former general to take office in January.

Almost a quarter of a million people were killed or “disappeared” during the 1960-1996 conflict between leftist guerrillas and the government. More than 80 per cent of the murders were committed by the army, according to a United Nations-backed truth commission.

The commission, which compiled thousands of interviews with victims after the 1996 peace accords, named no officials, in part because the army files were not open to the public.

Mr Colom’s uncle, Manuel Colom Argueta, a leftist politician with presidential ambitions, was killed by the army in 1979 in a well-coordinated ambush.

Rights groups say the new army files will help solve war crimes when matched with information in the police archive discovered in June 2005, as police collaborated with the army.

Mr Colom said all the information from the military will be turned over to the human rights ombudsman, also in charge of cleaning and categorising the thousands of police documents left to go mouldy in an old warehouse behind a dump for rusted cars.

The massive paper trail gives hope to family members who are looking for answers about their long-disappeared relatives.

Eighty-year-old Emilia Garcia hopes the army files will contain clues about her son Fernando Garcia, a union leader shot by police in 1984, taken to a military hospital and never heard from again.

That’s when Washington Mutual Inc. first tried to foreclose on his home in Boca Raton, Florida. The Seattle-based lender failed to prove that it owned Lents’s mortgage note and dropped attempts to take his house. Subsequent efforts to foreclose have stalled because no one has produced the paperwork.

“If you’re going to take my house away from me, you better own the note,” said Lents, 63, the former chief executive officer of a now-defunct voice recognition software company.

Judges in at least five states have stopped foreclosure proceedings because the banks that pool mortgages into securities and the companies that collect monthly payments haven’t been able to prove they own the mortgages. The confusion is another headache for U.S. Treasury Secretary Henry Paulson as he revises rules for packaging mortgages into securities.

“I think it’s going to become pretty hairy,” said Josh Rosner, managing director at the New York-based investment research firm Graham Fisher & Co. “Regulators appear to have ignored this, given the size and scope of the problem.”

More than $2.1 trillion, or 19 percent, of outstanding mortgages have been bundled into securities by private banks, according to Inside Mortgage Finance, a Bethesda, Maryland-based industry newsletter. Those loans may be sold several times before they land in a security. Mortgage servicers, who collect monthly payments and distribute them to securities investors, can buy and sell the home loans many times.

Housing Boom

Each time the mortgages change hands, the sellers are required to sign over the mortgage notes to the buyers. In the rush to originate more loans during the U.S. mortgage boom, from 2003 to 2006, that assignment of ownership wasn’t always properly completed, said Alan White, assistant professor at Valparaiso University School of Law in Valparaiso, Indiana.

“Loans were mass produced and short cuts were taken,” White said. “A lot of the paperwork is done in the name of the original lender and a lot of the original lenders aren’t around anymore.”

More than 100 mortgage companies stopped making loans, closed or were sold last year, according to Bloomberg data.

The cost of direct US military operations – not even including long-term costs such as taking care of wounded veterans – already exceeds the cost of the 12-year war in Vietnam and is more than double the cost of the Korean War.

And, even in the best case scenario, these costs are projected to be almost ten times the cost of the first Gulf War, almost a third more than the cost of the Vietnam War, and twice that of the First World War. The only war in our history which cost more was the Second World War, when 16.3 million U.S. troops fought in a campaign lasting four years, at a total cost (in 2007 dollars, after adjusting for inflation) of about $5 trillion (that’s $5 million million, or £2.5 million million). With virtually the entire armed forces committed to fighting the Germans and Japanese, the cost per troop (in today’s dollars) was less than $100,000 in 2007 dollars. By contrast, the Iraq war is costing upward of $400,000 per troop.