Large Bank Failures Possible.

[chimper]

The Federal Deposit Insurance Corp. is gearing up for the prospect of a large bank failure. So double-check that all your deposits, including interest, are well within FDIC insurance limits.

http://www.marketwatch.com/news/story/story.aspx?guid=%7B03FBB3D6%2D6F11%2D455A%2D8730%2D04DC7082FEEA%7D

[stopfascism]

1. JP Morgan Risky?

Problem banks from "Institutional Risk Analytics, Torrance, Calif., based on FDIC data from that same date, puts Bank of America Corp. (BAC: Citigroup, Inc; JPMorgan Chase & Co; Wachovia Corp
HSBC; HBC as the riskiest big banks. More recently, Managing Director Chris Whalen cited J.P. Morgan, Citigroup and Bank of America as his chief concerns due to their heavier trading activity."

They are finally admitting that the $30 billion Bear Sterns buyout was really a save for JP Morgan. Our little Fed cartel can't let one of it's own members to fail, after all they want to be the World bank someday. Unless of course they run into the Japan problem where larger banks failed after buying up the smaller banks. That could throw a wrench into the works.:rofl:

[madrchsod]

2. let them go under....

[chimper]

3. I think quite a few will.

go bust.

[ThomWV]

4. I don't think a single large bank will fail, not one.

There might be a bunch of non-regulated 'securities' first go under and a handfull of poorly run small banks go under every year, but I doubt very seriously that any "Large" bank will go under.

[BlooInBloo]

6. Yup. WaMu just got a couple billion from someone as an "infusion".

[melm00se]

5. large banks in trouble

are nice juicy targets (with all their accounts and branches) for well run banks looking to widen their markets.

I remember when Goldome (large S&L) went south, 1 regional and 1 super-regional both used those acquisitions to vault them up to the next level (plus the loan guarantees by the FDIC didn't hurt).