Journal tomhudson's Journal: More than 100 US banks expected to fail. FDIC getting ready. 12
The Wall Street Journal is pretty downbeat about it
http://online.wsj.com/article/SB120398607404892133.html?mod=hps_us_whats_news
FDIC to Add Staff as
Bank Failures LoomThe 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.
... "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.
... There have only been four bank failures in the past 12 months, a rate the FDIC has easily been able to handle.
Okay, what is the deal about this
Its obvious from the way that the banks got out of hand (and are now asking for a $760 BILLION bail-out) that US banks are not properly regulated. If the taxpayer is going to have to foot the bill in the end, the banks have no right to scream about government intervention into how they handle "their business".
So, which one will fail first - Citi or Bank of America?
BoA (Score:1)
A BoA bailout would help honest hardworking Americans. I vote BoA to go down and get bailed.
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Dubai.
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Here's the question - would a bail-out really help honest Americans, or put them on the hook for the acts of their dishonest neighbors?
Why should speculators in one industry be bailed out and not others? Anyone with any brains knew Countrywide was heading for bankruptcy - that BoA paid $4 Billion to buy that mess (and let Mozilo take a $137 million bonus) shows that they are clueless. Any bail-out is throwing good money after bad, and you can be sure it will end up costing you - the taxpayer.
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Re:Titanic BoA (Score:2)
Passenger: Excuse me - calling this fork a spoon doesn't make it one ...
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Show me the LAST time you can recall when a group of neighbors up and invaded some country, or burned a neigh
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Too big to fail (Score:3, Informative)
I'd guess Citi is the most likely to run into problems simply because they seem to have been up to their eyeballs in every case of major financial fraud in the past 10 years or so (Asian financial crisis, Long Term Capital meltdown, Dot-com pump and dump, Enron, etc.).
would pay up to $180,770 (Score:1)
The agency, which insures accounts at more than 8,000 financial institutions...At the end of 2007, it had $52.4 billion in its fund that backstops the nation's insured deposits.
Not that I know anything about money I don't have, but the Brits throwing 107 bil at just one bank over the last five months looks just a bit more impressive.
I think being merely broke puts me way ahead of the game.
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Guess that makes me and my 3 figure savings account nouveau riche, huh?
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