Issuing a sell opinion on a bank stock is usually a short route to oblivion for a banking analyst. Mike Mayo is one banking analyst who did issue sell opinions on banks yet managed to survive. In his new book, “Exile on Wall Street”, banking analyst Mike Mayo provides an insider’s view on why the […]
29 Banks That Could Destroy The Global Economy
November 8, 2011 By 1 Comment
The Financial Stability Board (FSB) was established to coordinate international efforts to promote effective regulation and supervision of the global financial system. In its latest report on global systemically important banks, the FSB makes it clear that the world’s largest banks have become too big to fail without crashing the global economy. The leaders of […]
Too Big To Fail Casino Banks Make $518 Billion Bet On PIIGS Sovereign Debt
November 7, 2011 By 4 Comments
The “Too Big To Fail Banks” are at it again, making huge speculative bets on the odds of sovereign default by Portugal, Italy, Ireland, Greece and Spain. The costly lessons of the derivatives debacle of 2008 have apparently been forgotten. In 2008, the Too Big To Fail banks bought massive amounts of credit default swaps […]
Bank Of America Derivatives Timebomb Shows System Is Corrupt To The Core
November 3, 2011 By 12 Comments
The Federal Reserve recently allowed Bank of America to move its massive derivative positions from the bank holding company to its banking subsidiary which is an FDIC insured depository institution. By allowing this transfer, the Federal Reserve has allowed Bank of America to shift the risk of loss on speculative derivative contracts from the non-bank […]
FDIC Forecasts $19 Billion In Losses On Banking Failures – Why The Losses Will Be Five Times Larger
October 11, 2011 By 4 Comments
The FDIC today released an update on expected losses for banking failures through 2015. For the five year period 2011 through 2015 the FDIC is forecasting total losses from banking failures of $19 billion. Total losses from banking failures during 2010 were $23 billion compared to $6.4 billion in 2011 year to date losses. A […]
The RiverBank, Wyoming, Minnesota, Fails After 114 Years
October 7, 2011 By Leave a Comment
The River Bank, Wyoming, Minnesota, was closed today by the Minnesota Department of Commerce. The FDIC was appointed as receiver and sold the failed bank to Central Bank, Stillwater, MN. All deposits of The River Bank will be assumed by Central Bank. The River Bank was originally founded as The Bank of Osceola by businessman […]
Global Financial System Faces Worldwide Bank Runs and Failures, Citigroup’s $300 Billion Problem
October 5, 2011 By Leave a Comment
Three years after the height of the financial crisis, the issue of impaired assets on bank balance sheets remains a major risk to the health of the banking system. Regulators have allowed banks to avoid taking losses on impaired assets by not requiring mark to market accounting. The extent of overvaluation on bank loans can […]
European Banking Crisis Spins Out Of Control – Officials Have No Solutions
September 12, 2011 By 1 Comment
The European banking crisis intensified as the threat of debt default contagion spread across Europe. What was once a “Greek” problem has quickly overwhelmed all of Europe, resulting in a broad sell of equities and frozen credit markets. Bloomberg reports that European banks are now being valued at levels last seen during the worst of […]
Will The Run On Greek Banks Spread Across Europe?
September 10, 2011 By 1 Comment
With the interest rate on short term Greek government debt approaching 100%, markets are saying that default by Greece is inevitable. Greece is expected to run out of cash within weeks and massive civil unrest may slide into anarchy as protests become increasingly violent. The bailout by the European Union that was supposed to save […]
$1.2 Trillion Of Nervous Money Floods Into U.S. Banking System
September 9, 2011 By 1 Comment
With the European banking system tottering on the brink of collapse, nervous holders of cash have flooded the U.S. banking system with $1.2 trillion of deposits. Panicky holders of large amounts of cash are taking advantage of a provision of the Dodd-Frank Act that provides unlimited FDIC insurance coverage on noninterest-bearing transaction accounts. The Dodd-Frank […]