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« Urban hellhole | Main | On the beach »

Aug 27, 2009


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There have been some recent failures of moderate sized banks:
Guaranty $13B assets
Colonial $25B (bought in a great deal - and not the Countrywide/Merrill type great deals - by BB&T)
BankUnited $13B

Corus - ~$7B is circling the drain - deadline for bids 9/3.

The tipping point will be when the size of a bank failure moves an order of magnitude from ~10B in assets to the > $100B in assets, and then again to one of the 4 > $1T in assets. I'd expect a > $100B-assets bank to fail/merge under duress in 2009.

I understand the need to keep rates low to spur demand, but 0% deposits allow banks to hold non-performing loans at nearly no cost. As long as they don't need to foreclose and sell off homes, they'll hold the loans at inflated values on their books. Bernanke is damned whatever choice he makes.

They don't publish the list, but when it jumps by a number like $143B, it will say exactly who was added...


Has Roubini commented on negative interest rates ?

Bankers watch as Sweden goes negative

For a world first, the announcement came with remarkably little fanfare.

But last month, the Swedish Riksbank entered uncharted territory when it became the world’s first central bank to introduce negative interest rates on bank deposits.

Seem to me this indicates major problems still abound, being 'uncharted territory' and all.

Fec the Jihadist

Despite the funding problems, the FDIC, from a manpower perspective, is now in much better shape to close banks.

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