Rumors of a top 10 bank failure coming..............

[cozdiver]

I think we all know why I can't post a link to the story but along with this story
now Bank of America and Wells just released news they are going to payback some TARP
funds makes it look like it won't be them. The time period is estimated to be
either this week or next. Any guesses? Here is the list if accurate:

Citigroup
Bank of America
JPMorgan Chase
Wachovia
Taunus
Wells Fargo
HSBC North America
US Bancorp, Minnesota
Bank of New York
SunTrust
Regions Bank, Alabama
Branch Banking and Trust Company, North Carolina
US Bank, Ohio

[Doomerific]

Sun Trust. 

Between the news and the rumors it sure seems like things are heating up again. 

This will all go mainstream just in time to alert the herd what just happenED to them. 

[lynnie]

They are all insolvent.

The only thing keeping up the show is the recent dishonest, unscrupulous change in the mark to market regulations. Instead of declaring the true current value of their assets on the books, and what it will really fetch at auction, they can declare the invisible magic value it will really bring one day in the blissful recovery just around the corner. As derivative bets crumble, instead of losing your money they can pretend to still have it, in that big rock candy mountain greedy sociopathic dream.

I say get every penny out and buy tangibles now while you can. I can hardly believe what we are living in.

[picasso moon]

I can hardly believe what we are living in.
lynnie, you ain't seen nothing yet!

[dc62]

They are all insolvent.

The only thing keeping up the show is the recent dishonest, unscrupulous change in the mark to market regulations. Instead of declaring the true current value of their assets on the books, and what it will really fetch at auction, they can declare the invisible magic value it will really bring one day in the blissful recovery just around the corner. As derivative bets crumble, instead of losing your money they can pretend to still have it, in that big rock candy mountain greedy sociopathic dream.

I say get every penny out and buy tangibles now while you can. I can hardly believe what we are living in.

Well said.

[nomore]

cozdiver are you starting a LATOC pool on which of the biggies will go first and when?

They are all insolvent.

The only thing keeping up the show is the recent dishonest, unscrupulous change in the mark to market regulations. Instead of declaring the true current value of their assets on the books, and what it will really fetch at auction, they can declare the invisible magic value it will really bring one day in the blissful recovery just around the corner. As derivative bets crumble, instead of losing your money they can pretend to still have it, in that big rock candy mountain greedy sociopathic dream.

I say get every penny out and buy tangibles now while you can. I can hardly believe what we are living in.

Oh I'm out...way out of my bank (keep just enough in there to be able to cash a check and annoy the shit out of the bank because there's so little money in it), also very little money in my credit union.

I'm definitely long tangibles and a bit of stashed cash. Also paid forward a bit on taxes & services (like Internet) bills.

[cozdiver]

More on this here:

http://thefundamentalview.blogspot.com/2009/09/china-and-buzz-of-pending-bank-default_03.html

[Grower]

Hm. . .

They (Reuters) cited 6 foreign banks.Where the story gets really intriguing is that among the major derivatives providers according to Reuters but also widely known in the industry, are Goldman Sachs, UBS and JP Morgan.

and

Let’s take a closer look at the companies that have been mentioned in these news articles out of China. They are Air China, China Eastern and Cosco. If you ask me, this conundrum might have to do with oil. I deduce from this that if there is a problem brewing it has everything to do with their Oil Derivatives business.

Here’s a brief overview of what might happen should these companies, and others, default. The banks, namely Goldman Sachs, J.P. Morgan and from other accounts possibly Deutsche Bank will find themselves LONG on oil futures with no customers on the short side of the derivatives. This will most likely lead the banks to sell the excess oil futures without a care for the price. This is no different than what happened when Bear Stearns was forced to sell off their gold futures in March of 2008 which then resulted in a sharp downturn in the price of Gold.

Reuters stated:

    Spokespersons at Goldman Sachs (GS.N) and UBS (UBSN.VX) declined comment, and media officials at Morgan Stanley (MS.N) and JPMorgan (JPM.N) were not immediately available for comment. All are major global providers of commodity risk management.

We have yet to hear their commentary. A Chinese statesperson was quoted as saying “"If we were among the banks receiving that letter, we would be very angry.” You bet your bottom dollar. You don’t think the firms listed above are angry, or, are they frightened that if the Chinese State Owned entities start taking affirmative action it could theoretically bring down some of the biggest remaining names on Wall Street?

[Hardondee]

More on this here:

http://thefundamentalview.blogspot.com/2009/09/china-and-buzz-of-pending-bank-default_03.html

Great discussion going on in the comments.  Thanks for the link.

[nepenthean]

        I say get every penny out and buy tangibles now while you can. I can hardly believe what we are living in.

word.

I am concerned for the kids of today for their tomorrow.

[cozdiver]

Uh oh...........

http://market-ticker.denninger.net/archives/1445-WaMu-Part-II-Wells-Fargo.html

One senior member of Wells Fargo’s commercial loan group who deals directly with the quandary, who spoke on the condition of anonymity, said, “One third of this commercial portfolio we took on from Wachovia is impaired and needs to be completely rewritten. I’ve just hired five more guys and we can’t keep up with the volume of defaults. Southeast Florida and Tampa are serious trouble spots.”

[jtmo3]

None of the above. With what's gone on in the last year, do you really think they will let one of these banks fail? If so, you haven't been paying attention.

[xyu]

Every day - every week, there's a new rumour of bank failures or impending doom.
People should be aware of the position of the people starting these rumours. What do they have to gain from this?

A few weeks ago, here in Canada, rumours were running wild about the Bank of Montreal having problems, and it was going to be announced with their quarterly earnings. Shares took a small beating days before the earnings were due. Earnings were then reported as better then expected and the stock price jumped.

The people involved in the rumours more then likely were manipulating the stock price in order to create a buying oppurtunity. These things happen, so always consider the source, and what they have to gain.

[cozdiver]

None of the above. With what's gone on in the last year, do you really think they will let one of these banks fail? If so, you haven't been paying attention.

I don't think they will let Chase,BofA,or Citi fail but the rest are fair game. The market ticker
may not be right all the time but I guarantee you he is right when he says the banks
have a crapload of bad loans and toxic asets that the public does not know about.
Corus bank in Chicago just went under and it had 70% rate of bad loans. It makes
you wonder what bank is going to hit the news today with that many bad loans.

http://www.businessinsider.com/bove-wells-fargo-sitting-on-a-volcano-about-to-explode-2009-9

As we wrote earlier this week, outside experts hired by Wells Fargo to examine its books are reportedly shocked at the bank’s exposure to derivatives trades it took on when it acquired Wachovia may trigger huge losses at the bank.

[mtlouie]

None of the above. With what's gone on in the last year, do you really think they will let one of these banks fail? If so, you haven't been paying attention.

All of the above.  Eventually.