Is your bank gonna die?

[AUChamps]

With the Indymac collapse, it's only a matter of time before more banks collapse and die. My question is will the FDIC be ok, or will they be like California firefighters that have over 1000 fires to put out and nowhere near the manpower? A lot of ppl are worried about National City Bank and WaMu, and honestly National City's been a bank I've been worried about for the past 6 months.

Your thoughts on the banking meltdown and if we're looking at a forest fire of smoke?

[Tennessee Ted]

Sadly, I do not have too much to worry about if this occurs. :laugh:

[Cianne]

In terms of manpower, I'm sure it is a matter of how many banks collapse and if they do it simultaneously. It's going to be interesting to see how much of that $52 billion insurance fund gets stretched in the coming times though. Also, I know Alabama-based Regions is going through hardtimes seeing as how it's stock has dropped from a 52-week high ~ $40 last year to hitting $7.13 at close on Monday.

[AUChamps]

In terms of manpower, I'm sure it is a matter of how many banks collapse and if they do it simultaneously. It's going to be interesting to see how much of that $52 billion insurance fund gets stretched in the coming times though. Also, I know Alabama-based Regions is going through hardtimes seeing as how it's stock has dropped from a 52-week high ~ $40 last year to hitting $7.13 at close on Monday.
Tennessee's biggest bank(First Horizon, which does business as First Tennesseee) went down big time too.

Maybe we should start investing in mattresses with money storage compartments?

[Cianne]

Yea, Jackson-based Trustmark has seen its stock profile half since September while Tupelo-based BancorpSouth has done the same though it only recently tanked in May due to all the mega financial insecurity that has popped up recently.

[RW13]

Sadly, I do not have too much to worry about if this occurs. :laugh:

I'm in the same boat Ted. I'm hoping for certain banks (i.e. the ones I've applied to over the past 7 1/2 months) to go under. They go can go to hell.

[GeauxTo]

Anyone know about Chase? What's the prognosis?

[ColonelKurtz]

The few of you appear to follow the happenings in the Financial World a bit and so I think I'll turn y'all onto a blog which delves into the intricacies of Global Finance:

http://www.billcara.com/archives/2008/07/daily_report_for_tue_jul_15_20.html#more

There are a myriad of reasons why we're seeing things spiral out of control but first and foremost insofar as us Americans are concerned, our Government has seen fit to indebt us into insolvency. The Spend-Spend damn the debt mentality which the Congress and seemingly the voters have willed now brings the ominous dark skies of collapse, of banks closing and of our currency becoming worthless. Our Presidents have paid passing lip service to the ills they have overseen and they have done NOTHING to inspire/lead Congress into fiscally responsible actions.

The Keynesian Economic model has failed miserably yet it serves as some mantra STILL for our leaders, even in light of the obvious FACT that Trillions of Dollars in US indebtedness simply cannot be moved off the books, remain hidden by changing the Accounting rules, or by invention of International or Domestic Social strife to divert our attention from it. Yes folks, our so-called Ivy League brain trust has conspired to enrich themselves and their buddies while suspending our Nation's entire future by spaghetti strands made of phony paper, disappearing red ink, and the biggest confiscation of wealth the World has ever seen.

We the People can still fix this mess and We the People can still hold those responsible for their inactions and deceptions but We the People must first reclaim our Nation.

[WarEagle73]

Everyone needs to calm down. Step back and take a breath folks. First of all, here is a news flash. Banks fail, it's not that uncommon. There will be a higher number than normal of banks failing over then next few months due to the credit crisis, but far and away most banks will see losses but come through unscathed.

The reason IndyBank is failing is they specialized in investing in sub prime mortgages. This is not the norm for banks. It was a high risk / high reward strategy that reaped them huge profits wile the housing market was smoking, but now that it has collapsed, they're getting burned.

Furthermore, unless you have more than $100,000 in any one account (and only an idiot would do such) you have nothing to worry about even if your bank does go under. All deposits up to $100,000 are insured by the FDIC. That means that if your bank does "die" you still get your money back.

What's happening in the banking industry makes a good news story. All the networks know the quickest way to get folks to pay them attention is to come out with a story that scares the hell out of them. Thus they take a mole hill and quickly make it into a mountain. Go do a little research on the number of bank failures in the early 1990's. We survived that, we'll survive this.

[ColonelKurtz]

Everyone needs to calm down. Step back and take a breath folks. First of all, here is a news flash. Banks fail, it's not that uncommon. There will be a higher number than normal of banks failing over then next few months due to the credit crisis, but far and away most banks will see losses but come through unscathed.

The reason IndyBank is failing is they specialized in investing in sub prime mortgages. This is not the norm for banks. It was a high risk / high reward strategy that reaped them huge profits wile the housing market was smoking, but now that it has collapsed, they're getting burned.

Furthermore, unless you have more than $100,000 in any one account (and only an idiot would do such) you have nothing to worry about even if your bank does go under. All deposits up to $100,000 are insured by the FDIC. That means that if your bank does "die" you still get your money back.

What's happening in the banking industry makes a good news story. All the networks know the quickest way to get folks to pay them attention is to come out with a story that scares the hell out of them. Thus they take a mole hill and quickly make it into a mountain. Go do a little research on the number of bank failures in the early 1990's. We survived that, we'll survive this.

You sound like Washington. "Don't sweat it folks, it's all under control." Bullshit. The Trillions is lost equity caused by the STILL sinking USD and the STILL piling on debt, monopoly money printing Congress run by Pelosi, Dodd, and the thief Rangle aided and abetted by that master thief Paulson and his bagman Bernacke is sure making the US population happy and knowing that the FDIC backs your vaporizing deposits with LOWER VALUED USD's is sure a COMFORT. That $100,000 is today worth ONLY $71,960. Where did over $28,000 of my money go??????

Yea, we'll survive it, a damn site poorer than we were, but we'll survive....

[WarEagle73]

You sound like Washington. "Don't sweat it folks, it's all under control." Bullshit. The Trillions is lost equity caused by the STILL sinking USD and the STILL piling on debt, monopoly money printing Congress run by Pelosi, Dodd, and the thief Rangle aided and abetted by that master thief Paulson and his bagman Bernacke is sure making the US population happy and knowing that the FDIC backs your vaporizing deposits with LOWER VALUED USD's is sure a COMFORT. That $100,000 is today worth ONLY $71,960. Where did over $28,000 of my money go??????

Yea, we'll survive it, a damn site poorer than we were, but we'll survive....


Do not blame Washington on the unsound investment practices of Banks such as IndyBank. Wile Washington is well populated by imbeciles, it was the Banks' investment choices that have led to their downfall.

The issue of the devaluation of the dollar is a valid one, but it is still a separate issue from the failure of IndyBank. Pelosi, Dodd, Rangle, Paulson, Bernacke nor anyone else in Washington sit on the board of this bank and have no say in how it used it's investment capital.

Also, it's just as true that Washington is not the source of all our troubles just as it is that they are not the answer to most of them as well.

[AUChamps]

Everyone needs to calm down. Step back and take a breath folks. First of all, here is a news flash. Banks fail, it's not that uncommon. There will be a higher number than normal of banks failing over then next few months due to the credit crisis, but far and away most banks will see losses but come through unscathed.

The reason IndyBank is failing is they specialized in investing in sub prime mortgages. This is not the norm for banks. It was a high risk / high reward strategy that reaped them huge profits wile the housing market was smoking, but now that it has collapsed, they're getting burned.

Furthermore, unless you have more than $100,000 in any one account (and only an idiot would do such) you have nothing to worry about even if your bank does go under. All deposits up to $100,000 are insured by the FDIC. That means that if your bank does "die" you still get your money back.

What's happening in the banking industry makes a good news story. All the networks know the quickest way to get folks to pay them attention is to come out with a story that scares the hell out of them. Thus they take a mole hill and quickly make it into a mountain. Go do a little research on the number of bank failures in the early 1990's. We survived that, we'll survive this.

To be fair, those were S&L's and not Banks. Yeah I know, on the surface they don't seem different but there was a reason why only massive amounts of S&L's died in the early 90s and not nearly as many banks did.

[WarEagle73]

To be fair, those were S&L's and not Banks. Yeah I know, on the surface they don't seem different but there was a reason why only massive amounts of S&L's died in the early 90s and not nearly as many banks did.


Actually the S & L collapse was in the 1980's and it's cause was much as we see today, unwise investment strategy.

Here's some perspective....

1. There have only been two years since 1934 when NO U.S. banks failed: 2005 and 2006.

2. Only 3 U.S. banks failed in 2007.

3. Besides the 2005-2007 period, there has never been another three-year period since 1934 when only 3 U.S. banks failed.

4. Even at the peak of the S&L banking crisis when more than 1,000 banks failed in 1988 and 1989, at a rate of more than 2 every business day for two consecutive years, the economy survived without going into a recession.

[Tennessee Ted]

You sound like Washington. "Don't sweat it folks, it's all under control." Bullshit. The Trillions is lost equity caused by the STILL sinking USD and the STILL piling on debt, monopoly money printing Congress run by Pelosi, Dodd, and the thief Rangle aided and abetted by that master thief Paulson and his bagman Bernacke is sure making the US population happy and knowing that the FDIC backs your vaporizing deposits with LOWER VALUED USD's is sure a COMFORT. That $100,000 is today worth ONLY $71,960. Where did over $28,000 of my money go??????

Yea, we'll survive it, a damn site poorer than we were, but we'll survive....

It is funny how the Republicans have ruled the Congress the greater part of the last decade and now that the Dems have a slim lead it all becomes their fault. What a load of BS.:thumbsdow

[ColonelKurtz]

Do not blame Washington on the unsound investment practices of Banks such as IndyBank. Wile Washington is well populated by imbeciles, it was the Banks' investment choices that have led to their downfall.

The issue of the devaluation of the dollar is a valid one, but it is still a separate issue from the failure of IndyBank. Pelosi, Dodd, Rangle, Paulson, Bernacke nor anyone else in Washington sit on the board of this bank and have no say in how it used it's investment capital.

Also, it's just as true that Washington is not the source of all our troubles just as it is that they are not the answer to most of them as well.

IndyBank specialized in Atl-A loans which exceeded FannieMae & FreddieMac's limits. Atl-A loans are NOT subprime and the subsequent failure of the Bank is directly attributable to the LOSS of REAL ESTATE EQUITY caused by the falling value of the US Dollar and the bank's use of its mortgage portfolio as collateral for liquidity. Just as the homeowner faces an increase in payments due to the terms of their ARM, the bank was getting 30% LESS liquidity from the Federal Reserve than its tranches of mortgages were priced at. D-Day arrived last Friday, though it was a forgone conclusion that the bank would fail earlier in the week.

Sorry but all of this is interconnected, as there is no ability to separate the decline of the Dollar's value and the contagion in our Banking industry. The Treasury, the SEC, and Congress are all the criminals here for they make the RULES the Banks play by. Where was the oversight?

Yes, since Washington dictates the latitude by which Wall Street functions, it damn sure is responsible just like Generals in the Armed Forces are when one of their minions screws up. Funny how folks don't recognize them as identical issues. Perhaps if more did, our citizens would be far LESS TOLERANT of piss poor performance in DC!

Here's another one for you 73 since you mentioned that All of our deposits are safe: did you know the FDIC was $2.6 TRILLION SHORT in its coverage account as of 7/12? Our yet to fail Banks have some $6.84T on deposit while the FDIC only has $4.2T in reserves. (Consult the FR8 report for w/e 7-11-08, line 17 and the FDIC's own website for its insured deposit amounts.)

So if there is a run on the banks, you'll only get 50 cents on the dollar + a slip of paper for the rest. Fiat money begets fiat settlements, eh?

[timNem]

Did Schumer bust the bank?

http://latimesblogs.latimes.com/laland/2008/07/feds-cite-schum.html

[UKat]

The bottom line is most Americans don't want to hear that our economy and they're dollar is almost none-existent. Nobody ever wants to hear bad news....but the news IS bad and going to get worse. You can't live on debt and print worthless money as our nation has the past 30 yrs. We have gone from being a debt free nation to the largest debtor in the world.

Sooner or later the crows come home to roost and it's pretty close to roosting time. These idiots are going to not only cause a recession/ depression in our country, but it will be worldwide as most every commodity price is base off the USD, a currence that is being be devalued daily and going down the toilet. Shoot our own Vice Prez. exchanged 10million, yes that's 10 mil. of his money into Euros.........the power elites are getting out of U.S. currency as they know it is going down.

We as Americans have got to wakeup, turn off the t.v. and take our country back from these morons that have been taking our country down and giving it away. Has anyone ever wondered why foreign corporations are coming here and buying up American companies for pennies on the dollar? It's because the USD is only worth .40 . We're losing another American icon corp. in Anheuser-Busch..........to a foreign entity. If we don't get our heads out of the sand and educate ourselves on what is going on behind the scenes in our country it will be too late.

This isn't the same country that I grew up in 50 yrs. ago.

[AUChamps]

Even at the peak of the S&L banking crisis when more than 1,000 banks failed in 1988 and 1989, at a rate of more than 2 every business day for two consecutive years, the economy survived without going into a recession.

.....because the effects of the S&L Crisis didn't ripple until 1990 and 1991 when the recession hit full-on. I'm talking about how it impacted commercial development and the sheer amount of Chapter 11 bankruptcies we saw companies file for(many of which didn't survive because they had so little equity that nobody wanted to buy up their mess).

Going off that, I'm gonna have to bet big then that 2009 and 2010 are gonna be pretty deep recession years(not 1980-1982 bad, but definitely 1990-1991 bad).