Ron Griess of Thechartstore.com highlights the bank failures with this chart — 23 so far this year, versus 25 in all of 2008:
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Overall household indebtedness is up from $7 trillion to almost $10 trillion since 2000. On this sum, we estimate, the American consumer has an annual interest bill of more than $500 billion; a sum, by the way, that vastly exceeds his current income growth." —Kurt Richebacher
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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April 13th, 2009 at 11:42 am
Until Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Merrill Lynch & Co., Morgan Stanley, State Street Corp. and Wells Fargo & Co., are on the list, bank failures mean nothing.
We’re worried about small leaks while a flood tide of trouble and needless expense is topping our regulatory, tax, and financial systems.
Dam(n).
April 13th, 2009 at 11:55 am
Tim Geithner and Sheila Baer in unison, “Please back away! Nothing to see hear, folks. Keep movin’!”
April 13th, 2009 at 12:00 pm
I agree with Marcus Aurelius. There is currently some $250 bln in non-performing assets on the books of FDIC insured institutions. The big four account for almost $100bln of that amount. That is crazy.
It seems impossible for the system to remain diverse when consolidation among the TBTF crowd is accelerating.
April 13th, 2009 at 12:28 pm
that Cape Fear Bank failure is a bad sign, Wilmington, N.C., a sleepy port town, until the late-80s, primarily a vacay destination, was waay ramped on the RE end with the background mantra of “increased foreign trade, research triangle just up I-40, a TAV airport that never flew, increased demand for 2nd/3rd ‘homes’/retirement destination, increase in Touron-ism..
in a fifty-mile radius, a microcosm of the ails of the US Economy..
April 13th, 2009 at 12:34 pm
This chart is meaningless without a corresponding chart of the total amount of deposits affected.
April 13th, 2009 at 12:36 pm
Apparently these few were not “too big to fail”, meaning their failure would not unduly upset the investing sheep, which have become a trifling edgy ever since a pack of wolves were hired as their shepherds.
April 13th, 2009 at 12:44 pm
BR, took a look down I-5 weekend before last for you, to no avail. Of course that could have something to do with me being in Seattle and you being in LA.
Anyways, my host’s wife went in to pickup her new fleet car and asked the rep how business was going. The reply? Fleet cars returning at a rate of 50 a day and metro wide 500 repossessions of cars a day. Ouch.
April 13th, 2009 at 12:51 pm
The losses are mounting. Now consider that a lot of smaller banks have heavy exposure to C&D loans.
It’s hard for me to see that the commercial real estate business can be bailed out. I am liking the SRS.
Looks like they are actually going to put tape over the cracks and sit Humpty Dumpty up on the smaller wall at SPX 1000 in front of the one he fell off last time. Amazing stuff, but he will be scrambled again by September.
April 13th, 2009 at 1:25 pm
Lefty:
A little OT, but I couldn’t help but notice that CNBC has a poll today ….was the GM bailout money wasted?
(You already know how I feel about the back end of this bailout…that higher taxes and low growth must follow this kind of government spending)….
So right now there have been 5400 votes and 83% thinks the money is gone….
http://www.cnbc.com/id/30191320
I guess my point is, we fiscal conservatives that blog aren’t alone in our feelings that this cure is perhaps going to be worse than the initial disease….unless the 83% were all Toyota owners, or like Barry, only ride in limos…..
And of course, we are putting smaller healthy banks at a disadvantage by sponsoring with tax money the bigger nimrods…
April 13th, 2009 at 1:53 pm
I’m in the process of slowly scaling from long equity funds and into TIPs funds in my retirement accounts. Will continue slowly amassing SRS in my non-retirement account over time here. They can’t bail everyone out, can they?
April 13th, 2009 at 2:04 pm
Another nice chart, showing failures by year since 2000:
http://www.chartmechanic.com/chart.jsp?c=demo/failedbanks.chart
Very scary that it’s only April…
April 13th, 2009 at 9:29 pm
Marcus they probably should be on the list but with the “secret” stress test results..hmmm
http://blogs.moneyandmarkets.com/martin-weiss/jpmorgan-chase-goldman-sachs-citibank-wells-fargo/
JPMorgan Chase, Goldman Sachs, Citibank, Wells Fargo and More Than 1,800 Other Institutions Believed to Be at Risk of Failure Based on Fourth Quarter 2008 Data
April 13th, 2009 at 11:11 pm
What are you guys smokin’? Or is it just denial?
GS is at $130; it just reported EARNINGS, it plans to issue new stock to repay uncle!
DJ UPDATE: Goldman Sachs To Repay TARP Funds As 1Q Profit Surges
By Joe Bel Bruno and Kerry E. Grace
NEW YORK (Dow Jones)–Goldman Sachs Group Inc. (GS) sent a clear signal to Washington on Monday: It’s more than ready to pay back taxpayers.
The investment bank delivered first-quarter earnings that sailed past even the most optimistic predictions and plans to raise $5 billion in stock to help pay back government bailout funds. It would become the first big U.S. bank to repay federal loans extended last autumn at the height of the credit crisis.
For Chief Executive Lloyd Blankfein, posting robust results was needed to help convince Washington that the New York-based investment bank was on a strong footing. The bank plans to repay the $10 billion of federal loans as soon as the government approves.
Wells Fargo said it would report RECORD earnings!
“For the quarter ended March 27, Goldman reported net income for common shareholders of $1.66 billion, or $3.39 a share, far exceeding analysts’ average forecast of $1.49 a share, according to Reuters Estimates. Revenue rose 13 percent to $9.43 billion.
Some analysts said the results, following Wells Fargo & Co’s (NYSE:WFC – News) surprising announcement last Thursday that it expects to report a record first-quarter profit, were a sign the U.S. banking industry is stabilizing.
“It’s another sign that the financial sector has gone through the worst,” said Keith Wirtz, president and chief investment officer at Fifth Third Asset Management.
http://finance.yahoo.com/news/Goldman-beats-forecasts-to-rb-14915717.html
Mark-to-myth has been blessed by TPTB.
The stress tests are now irrelevant as banks will soon be earning their way back to solvency.
It appears the rumors of the banking sector’s demise (just a few short weeks ago) were greatly exaggerated.
C is up nearly 400% from its low; BAC is up about 340%.
The only question is, if it’s all over, why aren’t long rates moving higher?
Ben can stop buying now. TBT is where it’s at!
April 14th, 2009 at 4:20 pm
2 banks failed on Good Friday, “Cape Fear Bank, Wilmington, NC ” and “New Frontier Bank, Greeley, CO”.
This makes 23 bank fails this year and 48 from start of year 2008.
Cape Fear Bank was the first bank from North Carolina to fail while New Frontier Bank becomes the second bank to fail from Colorado this year.
Nobody know how many more banks are going to fail. Prediction is in hundreds of bank.
I found list of failed banks and the map of where the banks are failing on portalseven.com
The page locations are :
Map of failed banks : http://portalseven.com/finance/Failed_Banks_Map_Since_2008.jsp
List of banks failed in 2009 : http://portalseven.com/Failed-Banks-2009
Do check it.
Pravin