Oil's energy contribution has declined by about 12% since 1999. The world's economies have also declined by about 12%. (Using conventional metrics, which are time delayed determinations, this will only be seen in hind sight). The massive destruction of asset values now occurring testifies to it happening.
Peak is well behind us, world economies have peaked and will continue to decline.
This week, I was honestly waiting for something more juicy like WaMu, but this one will do for the Friday thread. _________________ Stocking up on popcorn
"Washington Mutual was closed by the U.S. government in by far the largest failure of a U.S. bank, and its banking assets were sold to JPMorgan Chase for $1.9 billion. The rescue marks a historic step to clean up a U.S. financial system littered with toxic mortgage debt.
Washington Mutual, the largest U.S. savings and loan, was closed by the federal Office of Thrift Supervision, and the Federal Deposit Insurance Corp was named receiver. Customers should expect business as usual on Friday, the FDIC said.
The bailout came after the thrift suffered deposit outflows of $16.7 billion since Sept. 15, the OTS said. "With insufficient liquidity to meet its obligations, WaMu was in an unsafe and unsound condition to transact business," the OTS said."
_________________ "When fascism comes to America it will be wrapped in a flag and carrying a cross." --Sinclair Lewis
It didn't need to wait, it got siezed *last* friday and they just held it of the rest of the week while they sold it.
It was to big to publicly fail. _________________ Congress has found themselves in a bear trap. They will chew off three legs, and still be caught in it...
Posted: Sun Oct 12, 2008 8:46 am Post subject: Re: Friday closure banks
With the financial system collapsing so quickly, who cares about a couple of small bank? But, for the record:
Quote:
Illinois and Michigan banks with $123 million in deposits were closed by state regulators as tightening credit and a deepening real-estate slump pushes failures this year to 15, the most since 1993.
.... The FDIC said Main Street, based 25 miles west of Detroit, will cost the deposit insurance fund $33 million to $39 million and closing Meridian will cost $13 million to $14.5 million. The fund had $45.2 billion at the end of the second quarter.
Posted: Fri Oct 17, 2008 8:00 am Post subject: Re: Friday closure banks
A likely candidate for today: GMAC Financial Services
Quote:
GMAC will go bankrupt. The U.S lending giant is cut off from all lending sources. Smart depositors will flee its small bank (relative to GMAC itself). And its majority owner, Cerberus, won’t save it. It’s a pure liquidation play now– with the bank going into FDIC receivership, maybe as soon as this Friday. Whether or not all Hell will break loose is an open question, with many answers…
...
Uh, wait a second – GMAC’s regular lending rates were already non-competitive. Now they’re just stratospheric. And again. that’s for good customers. Non-prime customers– those who buy Aveos, Cobalts, HHRs, G5, G6, entry-level Malibus, Saturns and, well ,mostly everything else GM offers other than Cadillacs, Saabs, and high end big SUVs and Hummers– are now mostly shut out of financing altogether, from any source. If you wonder why car sales are tanking, look no further than the lack of credit availability for this group of buyers.
So GMAC’s out of the market. We know that. GM has even announced an incentive program to spiff dealers who get customers financed with anyone else besides GMAC. Meanwhile, GM still owns 49 percent of a soon-to-be bankrupt GMAC. The only saving grace here: GM’s managers won’t have to blame themselves. If you didn’t know that unloading GMAC was a desperate play for cash/time, and most people don’t, they look smart for unloading half of GMAC to the wizards of Wall Street.
...
Bottom line: GMAC now has $173b of debt against $140b of income producing assets (loans and leases), and some of those assets aren’t worth the paper they’re written on. If GMAC liquidated the loans and leases, it couldn’t pay back all of its debt. If you add GMAC Bank’s $17b in deposits (a liability), the situation only gets worse. No point looking at the rating agencies to tell you there’s a problem here. Good thing the FDIC required higher capital ratios for GMAC Bank; it might survive on its own with its higher quality assets. But everyone else is on their own.
By its own admission in an internal memo to employees this week, GMAC says that it has no access to funding. That means more layoffs. No Christmas bonuses. And probably telegraphing the message that the company could go under. Only the government can rescue GMAC now, adding to that to the pile of bigger rescues going on elsewhere. And any rescue can’t be seen benefiting private equity. So Cerberus will get wiped out. GM will have to write down its investment in GMAC, thus taking another enormous hit to its shaky balance sheet. And there will be further downgrades to its credit rating.
Joined: Sep 16, 2004 Posts: 4936 Location: Southwest WI
Posted: Fri Oct 24, 2008 2:36 pm Post subject: Re: Friday closure banks
You know what day it is!!
Quote:
SAN FRANCISCO (MarketWatch) -- The Federal Deposit Insurance Corporation said late Friday that Alpha Bank and Trust of Alpharetta, Ga., became the 16th bank failure of the year. FDIC was named receiver and entered into a purchase and assumption agreement with Stearns Bank of St. Cloud, Minn., to assume the insured deposits. As of Sept. 30, Alpha Bank & Trust had total assets of $354.1 million and total deposits of $346.2 million.
Joined: Apr 23, 2008 Posts: 172 Location: Georgia, USA
Posted: Fri Oct 24, 2008 3:28 pm Post subject: Re: Friday closure banks
eXpat wrote:
A likely candidate for today: GMAC Financial Services
Quote:
GMAC will go bankrupt. The U.S lending giant is cut off from all lending sources. Smart depositors will flee its small bank (relative to GMAC itself). And its majority owner, Cerberus, won’t save it. It’s a pure liquidation play now– with the bank going into FDIC receivership, maybe as soon as this Friday. Whether or not all Hell will break loose is an open question, with many answers…
...
Uh, wait a second – GMAC’s regular lending rates were already non-competitive. Now they’re just stratospheric. And again. that’s for good customers. Non-prime customers– those who buy Aveos, Cobalts, HHRs, G5, G6, entry-level Malibus, Saturns and, well ,mostly everything else GM offers other than Cadillacs, Saabs, and high end big SUVs and Hummers– are now mostly shut out of financing altogether, from any source. If you wonder why car sales are tanking, look no further than the lack of credit availability for this group of buyers.
So GMAC’s out of the market. We know that. GM has even announced an incentive program to spiff dealers who get customers financed with anyone else besides GMAC. Meanwhile, GM still owns 49 percent of a soon-to-be bankrupt GMAC. The only saving grace here: GM’s managers won’t have to blame themselves. If you didn’t know that unloading GMAC was a desperate play for cash/time, and most people don’t, they look smart for unloading half of GMAC to the wizards of Wall Street.
...
Bottom line: GMAC now has $173b of debt against $140b of income producing assets (loans and leases), and some of those assets aren’t worth the paper they’re written on. If GMAC liquidated the loans and leases, it couldn’t pay back all of its debt. If you add GMAC Bank’s $17b in deposits (a liability), the situation only gets worse. No point looking at the rating agencies to tell you there’s a problem here. Good thing the FDIC required higher capital ratios for GMAC Bank; it might survive on its own with its higher quality assets. But everyone else is on their own.
By its own admission in an internal memo to employees this week, GMAC says that it has no access to funding. That means more layoffs. No Christmas bonuses. And probably telegraphing the message that the company could go under. Only the government can rescue GMAC now, adding to that to the pile of bigger rescues going on elsewhere. And any rescue can’t be seen benefiting private equity. So Cerberus will get wiped out. GM will have to write down its investment in GMAC, thus taking another enormous hit to its shaky balance sheet. And there will be further downgrades to its credit rating.
Our mortgage was bought by Homecomings Financial, which is "a GMAC Company" according to our little statemens. Any issues for us?
That Alpharetta bank (Alpha Bank) is about an hour west of me. I went back and checked some lists that the Atlanta Journal and Constitution newspaper printed in July of banks with high Texas ratios and this one wasn't on the list.
This is from an article in the Atlanta Journal newspaper today:
It will be business as usual for most of the bank’s customers because they are covered by FDIC insurance. But 59 of Alpha’s bank accounts whose assets total $3.1 million exceed the federal limit of $250,000.
Joined: Sep 16, 2004 Posts: 4936 Location: Southwest WI
Posted: Fri Oct 31, 2008 5:24 pm Post subject: Re: Friday closure banks
Quote:
SAN FRANCISCO (MarketWatch) -- Bradenton, Fla.-based Freedom Bank was closed Friday, marking the 17th bank failure so far this year amid the ongoing credit crisis.
The Federal Deposit Insurance Corporation said in a statement that as of Oct. 17, Freedom Bank had $287 million in total assets and $254 million in total deposits.
Freedom Bank's four branches will open Monday as branches of Fifth Third Bank (FITB:
Fifth Third BancorpFITB 10.85, +0.69, +6.8%) , which has assumed Freedom Bank's deposits, according to the regulator.
Fifth Third agreed to assume Freedom Bank's deposits for a premium of 1.16%, and will purchase roughly $36 million of its assets. The FDIC also said it will retain the remaining assets.
The FDIC estimates the cost of the failure to its deposit-insurance fund will be between $80 million and $104 million.
Its Friday night! _________________ Clothing should be optional.
Posted: Fri Oct 31, 2008 8:50 pm Post subject: Re: Friday closure banks
Aye, Fridays rarely disappoint us. I think the Fed should have helped them, I mean, is the Freedom Bank!!! what more patriotic than that? _________________ Stocking up on popcorn
Joined: May 07, 2008 Posts: 462 Location: Chaska, MN
Posted: Fri Nov 07, 2008 6:53 pm Post subject: Re: Friday closure banks
CNN Money Breaking News: Franklin Bank, which had $3.7 billion in deposits, will be taken over by Texas rival Prosperity Bank, marking the 18th bank failure.
no link yet _________________ "With man gone will there be hope for gorilla? With gorilla gone will there be hope for man?" --Ishmael by D. Quinn
And the death toll rises again... _________________ "With man gone will there be hope for gorilla? With gorilla gone will there be hope for man?" --Ishmael by D. Quinn
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