Bank Failures

[homebuyer]

Two more bank failures:

http://money.cnn.com/2008/11/07/news/companies/bank_failure/?postversion=2008110809

FDIC info page on these closings:

http://www.fdic.gov/quicklinks/consumers.html (nice website, by the way)

Check out the FDIC's financial statement. It doesn't look like they could cover many bank failures:

http://www.fdic.gov/about/strategic/report/2007highlight/fs_dif.html

FDIC even has a real estate for sale page. Check out this $9,000 home listing:

http://www2.fdic.gov/drrore/detail.asp?id=4

Not enough money in their till, not so great real estate portfolio, no end in sight for the economy. I need a bigger mattress.

 

[holyroller]

Not enough money in their till, not so great real estate portfolio, no end in sight for the economy. I need a bigger mattress.

Thats the problem with making a guarantee on deposits, most countries can't afford the worst case scenarios.

 

[homebuyer]

Bank of America OMG!

Bank of America (BOA) is down to 11.25 (13.86% drop today) a share. The 52-week range is 12.93 - 47.00. I believe when AIG, Wamu, and the others got bought out last month BAC had dropped to around 20 a share. At the time, this was a shockingly low amount to be alarmed about. Now look at their price.

I wouldn't keep my money in Bank of America if you paid me. Good luck trying to get reimbursed quickly by FDIC if BAC fails.

 

[exponent]

LET THEM BURN as far as I'm concerned. I'm getting unfairly penalized via my stock investments because banks (and borrowers) couldn't be honest. So, I say:

To the banks that made fraudulent and predatory loans: BURN BABY, BURN.

To the bogus borrowers that took out NINJA (no income, no job / assets) and LIAR LOANS: I hope this Winter is cold.

And, last but not least, to everyone else affected by these liars and crooks, hold on, things will eventually get better (I hope).

 

[homebuyer]

And, last but not least, to everyone else affected by these liars and crooks, hold on, things will eventually get better (I hope).

In our lifetime?

 

[holyroller]

In our lifetime?

I guess that depends how old you are lol

 

[homebuyer]

Bank of America

Bank of America's stock traded as low as $7 a share today, down from $45.08 on 2/1/08. If you're a risk taker, this might be the best time to buy it. It's cheaper than a .com reg fee!

 

[hivelocitydd]

The 10 Biggest U.S. Bank Failures

1. Continental Illinois National Bank and Trust, Chicago (1984)
Total assets: $40.0 billion

2. First Republic Bank, Dallas (1988)
Total assets: $32.5 billion

3. American S&LA, Stockton, Calif. (1988)
Total assets: $30.2 billion

4. Bank of New England, Boston (1991)
Total assets: $21.7 billion

5. MCorp, Dallas (1989)
Total assets: $18.5 billion

6. Gibraltar Savings, Simi Valley, Calif. (1989)
Total assets: $15.1 billion

7. First City Bancorporation, Houston (1988)
Total assets: $13.0 billion

8. Homefed Bank, San Diego (1992)
Total assets: $12.2 billion

9. Southeast Bank, Miami (1991)
Total assets: $11.0 billion

10. Goldome, Buffalo (1991)
Total assets: $9.9 billion

Thanks

 

[homebuyer]

Obama

Is this a sign of businesses' faith in Obama's incoming administration? Or is it that nobody can plug the holes in the dam fast enough?

How much worse can it get? Run on banks? Food shortages? Chaos in the steets? Half of the people unemployed? Soup lines?

 

[johname]

Bank of America should not have bought countrywide and meril lych. They would be the big bad monster bank if they didnt

 

[GILSAN]

Looks like we will be seeing duzens more banks going down the drain this year. We no longer know what banks to trust.

 

[homebuyer]

Alert!

Bank of America's stock dropped 28.97% today. It went from $7.18 to $5.10.
Wells Fargo's stock dropped 23.82% today. It went from $18.68 to $14.23.

Anyone else catch this drop?

 

[johname]

Anyone else catch this drop?

you mean buy the stock?

BofA not to long ago went from 11 to 18 in a few days, i know things are diffrent this time but it is a tempting stock

 

[homebuyer]

Buy?

BAC's stock was tempting just four days ago at $7 a share. I am glad that I was so wrapped up in work that I did not have time to buy it. I would have lost some big bucks.

Today's closing price of $5.10 a share could signal the beginning of a run on the bank, so I'd be careful about buying it.

Before buying it, you'd have to figure out what caused today's drop. Was it caused by people's lack of faith in Obama? His speech did seem to be a little negative. That aside, the stock could shoot up briefly because of speculative buying, so you could make a short-term killing.

 

[GILSAN]

Yesterday there was a bloodbath in the UK banks. Royal Bank of Scotland down 70%, Loyds down 30% and Barclays down 20%. Today it was the US banks. Tomorrow who knows. Can anyone advise a safe bank to deposit my savings or should I buy Gold and bury it in my backyard?

 

[johname]

should I buy Gold and bury it in my backyard?

You can buy into NYSE:GLD its like holding gold without burying it in your backyard lol and it follows the price of gold without the earning scares that mining company stocks have.

 

[homebuyer]

Alternatives

Whatever you do, don't put money in your mattress or carry it around with you. You could lose it due to forgetfulness, fire, or theft. It is just too risky.

If you must take your money out of the bank, then you might want to consider getting U.S. Postal Money Orders in varying amounts up to $1,000 each. You might be better off having many smaller denominations rather than the $1,000 ones because it would be a lot easier to cash one at the post office if you don't have to make them empty out their registers to do so. If you get tired of cashing them, then you could always deposit them into your bank account.

I understand that the post office will reimburse you for lost or stolen money orders within 60-days if you fill them out beforehand. So do not walk out of the post office without filling them out. Fill them out to yourself. You can always cash or deposit them in your bank account later. I was told money order have no expiration date.

Do not confuse US Postal Money Orders with money orders that are issued by Western Union, Safeway, and other private businesses. These money orders are only as good as the company that issues them. If the company goes bankrupt, then you'll probabaly have to stand in line with their creditors.

One final word on money orders, fill out the top portion receipt, and put it in a safe location. Put the cash register receipt in a second location. Put the actual money order in a third location, preferably in the safest place. I wouldn't recommend making copies of the money orders because all too ofter people forget to take their originals off the top of the copier when leaving with their copies.

On a closing note, I scoffed at such an idea too until a 3rd party bank's ATM refused to give me $60 from my home bank account a while back when banks began refusing to lend to each other. I'll never forget how I felt standing there empty handed.

If after reading this post you still want to rely on the FDIC to cover your losses from a bank failure, then you should read up on the FDIC. They simply don't have enough money to cover more than one major bank failure. Sure, the feds could bail them out later on, but until they do, you'd be without your money. Ever see how slow the government is? Imagine them trying to come up with a trillion dollars.

 

[GILSAN]

You can buy into NYSE:GLD its like holding gold without burying it in your backyard lol and it follows the price of gold without the earning scares that mining company stocks have.

Thanks Johname. Actually I've been following with interest gold prices as well as this ETF (GLD) for the past few months. It's been going up and down but has done much better than the majority of stocks.

Thanks homebuyer for your "U.S. Postal Money Orders" tip. Since I don't live in the US that sugestion cannot work with me. We've only had one small bank that has failed here in Portugal. Most banks here seem to be rock solid, but we never know what surprises may come tomorrow!

 

[homebuyer]

Thanks Johname. Actually I've been following with interest gold prices as well as this ETF (GLD) for the past few months. It's been going up and down but has done much better than the majority of stocks.

Thanks homebuyer for your "U.S. Postal Money Orders" tip. Since I don't live in the US that sugestion cannot work with me. We've only had one small bank that has failed here in Portugal. Most banks here seem to be rock solid, but we never know what surprises may come tomorrow!

You might want to read an article about GLD's 2003 filing.

http://www.allbusiness.com/legal/estate-gift-trust-law-arrangements/5780543-1.html

They're a risk like any other company that has stock.

Now read this one (LOL):
http://www.sec.gov/rules/proposed/s72303/s72303-284.pdf

Name ring a bell? I wouldn't trust anybody with my money nowadays.

 

[eFingerz]

yea this is real bad for me

I'm down almost $1,000 just today in my bank stocks
and I sold most when its was at $48 per share now 4.60 per share (up .15 after hours ye haw)
I had a huge profit after splits & merges etc so I was still able to keep more than double of what i had originally after i sold!
I'm glad i sold what i did when i did but all of it went to debt and still have a lot more debt
tho the stock has been down hill mostly since so I'm glad i did what i did when i did!
I got a letter not to long ago and my dividend checks they went from about 50 cent a share to 10 cents per share
those checks were the reason i didn't sell everything
they always came in when i needed em the most
oh well
I now invest in bullets and beer and recycle the brass and bottles (tho only the brass pays here)
but if this land sale goes through and i get my % i may buy a few shares in google soon
or some primo domains or development