Author Topic: Analysts say more U.S. banks will fail  (Read 4142 times)

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JimB

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Analysts say more U.S. banks will fail
« on: July 14, 2008, 08:00:49 AM »
Analysts say more U.S. banks will fail

But the troubles are growing so rapidly at some small and midsize banks that as many as 150 out of the 7,500 banks nationwide could fail over the next 12 to 18 months, analysts say. Other lenders are likely to shut branches or seek mergers.

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By communion with God in nature, the mind is uplifted, and the heart finds rest.  {DA 291.1}

LindaRS

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Re: Analysts say more U.S. banks will fail
« Reply #1 on: July 14, 2008, 08:53:50 AM »
It's scary since almost all of us rely on banks which we use to conduct our business. I was watching news on Fox when the news was breaking about the big bank failure. If it is already this bad, what will it be like when national apostasy is followed by national ruin?
O Lord, I know that the way of man is not in himself: it is not in man that walketh to direct his steps. O Lord, correct me, but with judgment; not in thine anger, lest thou bring me to nothing. Jeremiah  10:23-24

Mimi

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Re: Analysts say more U.S. banks will fail
« Reply #2 on: July 14, 2008, 09:57:08 AM »
... a time of trouble that has never been since the world was.
  For ever, O LORD, thy word is settled in heaven. Psalm 119:89 

JimB

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Re: Analysts say more U.S. banks will fail
« Reply #3 on: July 14, 2008, 10:02:31 AM »
It is scary. Most banks like the IndyMac that failed in California are FDIC. However, how many banks can it bail out before developing more problems?
By communion with God in nature, the mind is uplifted, and the heart finds rest.  {DA 291.1}

JimB

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Re: Analysts say more U.S. banks will fail
« Reply #4 on: July 14, 2008, 02:00:09 PM »
IndyMac depositors line up for cash after seizure

PASADENA, California (Reuters) - Hundreds of worried IndyMac Bancorp Inc customers descended on the company's branches on Monday to withdraw their money, after regulators seized what was once one of the largest mortgage lenders in the United States.

Regulators took over the Pasadena-based lender on Friday after a bank run in which customers -- panicked over IndyMac's survival prospects -- withdrew $1.3 billion over 11 business days, regulators said.

Gerard Cassidy, an analyst at RBC Capital Markets, on Sunday said 300 U.S. banks might fail over the next three years because of credit losses and tight capital markets.

Regulators expect the IndyMac takeover to cost the FDIC $4 billion to $8 billion. The agency's insurance fund has about $52.8 billion.

Full Article Here
By communion with God in nature, the mind is uplifted, and the heart finds rest.  {DA 291.1}

LB

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Re: Analysts say more U.S. banks will fail
« Reply #5 on: July 15, 2008, 08:19:53 PM »
I would suggest going to Audioverse.com and listening to David Gates sermon "The Approaching Storm."  He gave some insight about the economic situation that is coming.

Richard Myers

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Re: Analysts say more U.S. banks will fail
« Reply #6 on: July 16, 2008, 09:36:47 AM »
It's scary since almost all of us rely on banks which we use to conduct our business. I was watching news on Fox when the news was breaking about the big bank failure. If it is already this bad, what will it be like when national apostasy is followed by national ruin?

Things will get worse, but it seems that we have experienced national apostasy. Homosexuals getting married, and Bush rejecting Protestantism along with most professing Protestant Churches.  The NYC World Trade Towers was an indication that the US is experiencing some "ruin".  The California wildfires is another example of ruin. New Orleans is more. I guess when the next big disaster hits, earthquake in San Francisco, terrorists hit another US city, or cancer rates are recognized as a plague, along with the devaluation of the dollar, some may wake up to the fact that we are living in the last days when Bible prophecy is fulfilling before our very eyes. Some believe that "fireballs" are imminent.  Are we in that day? Has America rejected her Protestant heritage? Has Protestant America reached across the abyss?  Is the Bible rejected by the Protestant Church? 

If so, then disaster upon disaster will come upon the land. And, in spite of wild speculation and rumors about Sundays laws, they are coming in response to the disasters and the straight testimony presented by the faithful followers of Jesus.
Jesus receives His reward when we reflect His character, the fruits of the Spirit......We deny Jesus His reward when we do not.

Richard Myers

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Re: Analysts say more U.S. banks will fail
« Reply #7 on: July 16, 2008, 09:38:58 AM »
Don't know about anyone else, but I don't have over a $100,000 in a bank.  Banks are safe up to a hundred thousand if they are FDIC insured.  Worry about the fed not paying? No problem. They just print up more money. Don't worry about your bank. Let us keep our eyes upon Jesus.
Jesus receives His reward when we reflect His character, the fruits of the Spirit......We deny Jesus His reward when we do not.

Mimi

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Re: Analysts say more U.S. banks will fail
« Reply #8 on: July 16, 2008, 10:02:11 AM »
Amen, Richard - I can't worry about it either or I'd go insane with insecurity. Jesus will care for His own - the others have made their choices. That we will be counted in that number is our prayer - that we will remain "Faithful Unto Death" is our desire. All the rest is irrelevant as horrendous as it will be. It is irrelevant.
  For ever, O LORD, thy word is settled in heaven. Psalm 119:89 

Wally

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Re: Analysts say more U.S. banks will fail
« Reply #9 on: July 16, 2008, 01:26:13 PM »
Don't know about anyone else, but I don't have over a $100,000 in a bank.  Banks are safe up to a hundred thousand if they are FDIC insured.  Worry about the fed not paying? No problem. They just print up more money. Don't worry about your bank. Let us keep our eyes upon Jesus.

I'm always amazed at how many people do have that much money squirreled away.  Scripture say that our bread and water will be sure.  What more do we need? 

What is really telling, though, is that some large universities are offering full funding for students whose parents make less than $100,000 per year.  That means that they consider those of that socio-economic level to be disadvantaged.  So, brother Richard, you and I are on the lower end of things, I guess.  But, I've never felt poor, even when working for less than minimum wage (never went hungry; never was homeless during those times).
So likewise ye, when ye shall have done all those things which are commanded you, say, We are unprofitable servants:  we have done that which was our duty to do.  Luke 17:10

Lewis

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Re: Analysts say more U.S. banks will fail
« Reply #10 on: July 16, 2008, 03:47:56 PM »
Don't know about anyone else, but I don't have over a $100,000 in a bank.  Banks are safe up to a hundred thousand if they are FDIC insured.  Worry about the fed not paying? No problem. They just print up more money. Don't worry about your bank. Let us keep our eyes upon Jesus.

So, brother Richard, you and I are on the lower end of things, I guess.  But, I've never felt poor, even when working for less than minimum wage (never went hungry; never was homeless during those times).

It is amazing what God does for those who love Him and totally depend on Him isn't it?

After living up here in the mountains and not finding much work because of the job situation at the present time, God has really blessed us. Now, we are more committed than ever to His honor and glory. We also do not see ourselves as "poor" either. We have been more than blessed by what God has done for us. ;D

Mimi

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Re: Analysts say more U.S. banks will fail
« Reply #11 on: September 17, 2008, 06:46:40 PM »
Washington Mutual pressured as economic storm intensifies

7 hours ago

NEW YORK (AFP) US officials are fiercely putting out a series of economic fires with all eyes now focused on the fate of Washington Mutual after AIG became the latest company to be thrown a lifeline.

According to the New York Post, US banking regulators are actively searching for a candidate to take over the Seattle, Washington-based bank amid fears it could be the next to be felled by the economic maelstrom.

The New York Times said Wednesday that the bank had hired Goldman Sachs to discuss a possible sale, with possible bidders including institutions such as Wells Fargo, JPMorgan Chase and HSBC.

Washington Mutual, the country's largest savings and loan, is now seen as one of the firms the most exposed to the current mortgage crisis sweeping the ailing housing sector.

Known as WaMu, it has seen its stocks savaged in a bloodbath on US markets in recent weeks, losing some 85 percent of their value this year. Shares plunged again Wednesday on the stock market losing some 13.36 percent to end the day at 2.01 dollars.

The west coast bank's total share value is now set at less than four billion dollars.

The Wall Street Journal said Wells Fargo and Citigroup had shown an initial interest. But if no buyer emerges, the government could be forced to place the bank into conservatorship, the New York Times said.

"The solution is an assisted transaction whereby Washington Mutual is sold to a second party and the FDIC covers all losses above a specified level," said Richard Bove, from Ladenburg Thalmann.

Bove was referring to the Federal Deposit Insurance Corporation (FDIC) which insures deposits in banks up to 100,000 dollars.

Even as the housing market was spiraling into a crisis, Washington Mutual continued to increase its reserves for bad debt, which hiked from 1.53 billion dollars in the fourth quarter of 2007 to 10.3 billion nine months later.

Having written off some 5.9 billion dollars in the second quarter due to the mortgage crisis, WaMu warned of a further depreciation of 4.5 billion dollars in the third quarter.

Anxious clients have already begun to show their concern.

The Financial Times reported Tuesday that deposits have dropped by five billion dollars since June -- a sign of panic which could see a rush on the bank as account holders line up to withdraw their money.

Bove said Washington Mutual has a huge customer base, with the average account holding some 5,200 dollars.

Like Lehman Brothers, which filed for bankruptcy on Monday, or American International Group (AIG), handed an 85-billion dollar bailout by the Fed, WaMu is caught in "a vicious circle," said Marc Pado from Cantor Fitzgerald.

The same causes are triggering the same results: a fall in share value reduces the value of the bank's assets and thus cuts the value of its collateral when it seeks fresh cash.

"The other side of the equation is, who has the liquidity to buy WaMu when everything is such in question?" said Pado.

On Monday, when all eyes were still on AIG as it struggled to stay afloat, ratings agency Standard & Poor's lowered its debt rating for the major West Coast bank to 'BB-' from 'BBB-.'

That came a week after Moody's downgraded its debt to non-investment or "junk" status.

To add to its woes, Washington Mutual chief executive Kerry Killinger was forced to step down last week after 18 years at the helm.

Given all these factors, it will be "difficult to find someone to step up to buy WaMu," warned Pado.
  For ever, O LORD, thy word is settled in heaven. Psalm 119:89