#1. Goldman Sachs IS the blood sucking vampire of the financial world. Granted.

#2. The failure of Indy Mac Bank was set in motion by Chuck Schumer. They were well capitalized, meaning they should have been able to weather some downside on their profits, which they were experiencing. http://www.bloomberg.com/apps/news?pid=20601103&sid=aAYLeK3YAie4 Schumer should be looked at, with his ties to Goldman Sachs. Both from New York, etc. Indy Mac's failure was one that didn't have to happen. Schumer was teh cause. Can't find the New Yorker magazine article just yet, but it describes in detail his roll in the failure of Indy Mac. Schumer orchestrated a run on the bank. Schumer needs to be investigated.

#3. Goldman Sachs got a sweetheart deal, but Indy Mac was the first of the large banks to go down, so FDIC didn't know how many willing buyers there were, and had just started ramping up their bank closure operations. Current banks that are being sold are now having their assets (loans) sold at par (100%), or with a slight discount. Indy Mac's portfolio of Alt A loans held a higher risk, so some discount was appropriate, but I'm not sure that the steep discount was appropriate.

#4 Loss share agreements are S.O.P. nowadays. It usually only applies to a portion of the loan portfolio purchased, and with the elimination of the steep discounts, fewer of the abomination type deals are out there.

#5. The video only shows one example. They don't discuss the transactions where Goldman Sachs took it on the chin. You need to look at the portfolio performance as a whole, not just one single transaction. I don't know if that data is available. As far as that homeowner is concerned, they signed a contract to pay the debt, they defaulted, and their loss was soley based on the front end of eth transaction. While it sucks that GS made money on the short sale, they had essentially hedged that short sale in a SEPARATE transaction. Had they not defaulted, it wouldn't have occured.

#6. The FDIC is funded by member banks, not by taxpayers directly. The fund for failed banks is not a static amount. Money flows in as assessments are collected from member banks, and flows out as bank failures occur. Look for a few more to be announced today after 5pm tonight. They close banks on Fridays. The line of credit will help smooth out the inflows and outflows if assessments aren't collected in a timely manner. Corporate clients are charged directly for FDIC insurance. Consumers receive no direct charge for the service, it is a service because it protects them. The consumer portion is collected through other fees, etc.