A new Federal Deposit Insurance Corp.  (FDIC) plan to offload busted banks to vulture investors strikes an uneven balance between private equity players and public taxpayers and may inadvertently sow the seeds for another round of bank failures.

Alabama regional lender, Colonial Bank, just became the 6th largest bank failure in U.S. history and the largest since Washington Mutual last year.

Sellers back in control… China, FDIC, U.S. consumers trigger global sell-off… Chris Mayer examines a disturbing trend among American investors… Signs of the times: Bernanke frets over commercial real estate, Treasury to sell U.S. mortgages to China… Greg Guenthner with a Far East opportunity growing “at an astronomical rate”…

As we all know, the Federal Deposit Insurance Corporation (FDIC) guarantees depositors that they’ll get their money back if a bank fails, at least up to a certain amount. To fund its operations, the FDIC collects small fees from the banks that are held in reserve for the purpose of taking over troubled banks and paying off depositors.

China bulls beware… Chinese regulator warns of American-style housing bubble… Market rejoices over housing start rebound… should you be celebrating too? Dan Amoss on shorting the stock market’s recent strength… Sign of the times… Mexicans, Czechs no longer welcome in Canada… Plus, Byron King reveals an arresting historic gold chart…

How to Make 191% Gains as Wall Street Swallows a Poison Pill – Again! I could start out today’s column by telling you all about how official unemployment is at a 26-year high at 9.5%. I could go on at length as to how unofficial unemployment may very well be double that and we’d never know.

The biggest financial reform of our generation… The 5 dives headfirst into Obama’s new plan… Stock market sell-off pauses… Wayne Burritt with the next short-term technical target… Dollar dips on new government reform… Chris Mayer on the near certainty of inflation… Paul Van Eden packs some sober advice on gold… Plus, feeling frustrated by the Fed’s free reign? A cause worth supporting, below…

The U.S. Treasury Department’s is pressing the go button on its Public-Private Investment Program and re-expanding the $1 trillion Term Asset-Backed Securities Loan Facility (TALF).

The 31st bank is closed in 2009… China is showing signs of improvement…  The so-called “decoupling” taking place?
Jobs Jamboree ends the week… And Now… Today’s Pfennig!

Bellwethers Report Disappointing Earnings; Morgan Stanley on the Hunt for Regional Banks; NYT Reports Loss; Pentagon Computers Hacked; FDIC Ready to Replace Pandit; TARP Faces Fraud; Financial Institutions Lost $4.1 trillion; India Cuts Rates