Another week, and you know what that means: FDIC Bank takeovers!

All charts courtesy of The Chart Store

Category: Credit, Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “FDIC Bank Failures”

  1. cognos says:

    Septenber is lowest cost month to FDIC since 2008.

    Last 5 months of failures combined ! cost is about the cost of 1 single large bank failure.

    It’s over. Get positioned for recovery, market will go to new highs and prob 1350 before year-end.

  2. CapComp says:

    I think the takeover of 3 wholesale credit unions with $50B of re-securitzation of MBS is the bigger bank story from the weekend. http://www.marketwatch.com/story/securitization-used-to-fix-toxic-credit-unions-2010-09-24

  3. rootless cosmopolitan says:

    @cognos:

    Last 5 months of failures combined ! cost is about the cost of 1 single large bank failure.

    And what about the last 6 months? Please do tell, cherry picker.

    It’s over. Get positioned for recovery, market will go to new highs and prob 1350 before year-end.

    Let’s think about the odds that this will be just one more of cognos’s prognostication fails, like all the others before.

    How will the S&P500 go to 1350, if the economy is very likely in another recession at year end according to what can already be seen in the data?

  4. How many thousands of people have been saved by the FDIC? How many people would prefer to have their money in an non-insured bank account? How many people think there is too much government regulation and oversight of banks? These are just tree of the many questions that should be asked of the “smaller-government” activists.

    Rodger Malcolm Mitchell

  5. [...] on a good blog by noted debt-hawk Barry Ritholtz, called The Big Picture. You can see the post at http://www.ritholtz.com/blog/2010/09/fdic-bank-failures-7/comment-page-1/#comment-412084 Bank Failures since June [...]

  6. cognos says:

    Rootless – how are my prognostications ” fails”?

    You do see that rIsk assets are UP!?

    You gotta love people who don’t invest saying how “right” they are, as they lose money. How much more money will you let them cost you?

  7. rootless says:

    @cognos:

    Rootless – how are my prognostications ” fails”?

    Simply. You make a prognostication, and then it is disproved by reality. So it is a fail. Like your prognostication from February about the number of bank failures in the following months. You said something like they will be down to 1 a month or so. Or your prognostication about the increase in payroll numbers and the roaring economy. What did you say about payrolls back then? According to you, the increase would be about 500,000 or so a month by now? Or your stock market prognostications.

    You do see that rIsk assets are UP!?

    Compared to when? Compared to where they were in early September, if you refer to the stock market? The S&P500 is at 1142 as of today. And this was your prognostication? Let’s see what you said early May:

    “I would guess that we’re closer to the end of the correction. Might see 1,150 or in some real extreme case of surprising bad news flow 1,120 on SPX.”
    (http://www.ritholtz.com/blog/2010/05/market-changes-tone-during-correction/)

    And now you try to claim the S&P500 at 1150 as a confirmation that you have been right, because the market has been up since its recent lows, although it shouldn’t have gone down as far as it went in the first hand according to your prognostications before?

    Let’s see what’s going to happen to your S&P500 at 1350 before year end. Of course, one always can speculate on and hope for an even larger disconnect between the stock market and the economic environment. Is this what you recommend? Or what is the foundation for your forecast? Do you also have some more prognostication how the economy is going to pick up in steam toward year end, although the data say it’s probably rather heading toward another recession?

    You gotta love people who don’t invest saying how “right” they are, as they lose money. How much more money will you let them cost you?

    And how many more times are you going to beat your wife? Your question is based on an unproven presumption in the sentence before. It’s a fallacious rhetorical trick. You have to prove the presumption first before your question could be a valid one.

  8. JimWilson says:

    The graphics are a stunning recognition of the fragility of the Banking System… It’s not really in the news for the time being, however, 1000 banks of the 7800 banks are underperforming and stressed, and say 250 of the 1000 are in very serious condition and are targeted for likely liquidation. If the economy turns further down, with an external event, oil crisis, mid-east issue… Then more of the 1000 stressed banks will also fail… The TARP so called bailout, was an effective tool to stabilize the banking system. And know that 90% of the TARP monies have been returned to the Treasury with interest, ahead of plan. So stop whining about TARP. Know this the banking system is not an optional ingredient in our society. Money and the Money System, which includes Banks and Investment Banking companies, are similar to needing Clean Air, needing Clean Water, needing Food. Our society must have a stable, confident monetary system, for without it our society would totally collapse. Therefore folks, look at these charts like your looking at your parents EKG in the hospital…
    Having been in the world of banking and after 20 years of growth and experience became a member of Bank Board of Directors, I have a perspective different than most of our population. Not being a gloom and doomer, there remains a serious weakness within our financial system that the industry and the regulators are very concerned with…

    Banking is a very unique business, it makes money with money. It’s the only business where the raw materials are the same as the finished products… Money… One final point. Banks have difficulty making new loans as they cannot make loans to start ip companies, no banks should. Start up companies are high Risk ventures, that need to be financed privately, not wi insured deposits from the banking industry. And most of the borrowers that represent the limited Fisk that banks are chartered to take, are not borrowing. Loan demand is severely depressed by typical qualified borrowers, as the present economic environment, political, and tax policy or lack of, adds too much Risk for smart companies to entertain expansion. So they are sitting on the sidelines protecting their cash, for a potential rainy day, or the day when much of this uncertainty is resolved. JimW