It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Falling Bank Stocks Offer a Too-Big-to-Fail Wakeup Call!

page: 1
20
<<   2  3 >>

log in

join
share:

posted on Aug, 10 2011 @ 11:25 AM
link   

Falling Bank Stocks Offer a Too-Big-to-Fail Wakeup Call!


www.bloomberg.com

Bank of America and Citigroup stood out for all the wrong reasons in Monday’s market meltdown. Shares of the two banks led the decline amid new doubts about the quality of the assets buried on their balance sheets.
Investors now believe that Bank of America’s net worth is only about a third of what the bank claims; for Citigroup the figure is less than half.
Any time shares of a financial company such as Bank of America or Citigroup plunge it’s particularly worrying. Both are among the roughly 40 U.S. institutions considered too big to fail. The Dodd-Frank Act, adopted in response to
(visit the link for the full news article)


Related News Links:
en.wikipedia.org
www.reuters.com
www.bizjournals.com
finance.fortune.cnn.com




posted on Aug, 10 2011 @ 11:25 AM
link   
Watching bank stocks take a plunge recently is a cause for alarm, especially Bank of America and Citi. The too big to fail problem is still an issue that needs to be dealt with even though many would like to ignore it.

We have witnessed what happens when giant banks fail because they were allowed to grow to large for their own good. The FDIC is holding up a system with $5.4 trillion in deposits and no deposit insurance money. We can’t forget they also got a “bailout “This is reality and cold hard fact.

The entire banking system of the United States is held up on pure credit worthiness “faith” alone.

The Dodd/Frank Act doesn’t allow any too big to fail bank bailouts. So I’m curious as to how they plan to divert a CRISIS worse than 2008.

Thomas Jefferson said:


“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

–Thomas Jefferson

The Dodd/Frank Act,


The Act, which was passed as a response to the late-2000s recession, was touted as the most sweeping change to financial regulation in the United States since the Great Depression, and purportedly represented a significant change in the American financial regulatory environment affecting all Federal financial regulatory agencies and affecting almost every aspect of the nation's financial services industry.

To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end "too big to fail", to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.


en.wikipedia.org...




www.bloomberg.com
(visit the link for the full news article)
edit on 10-8-2011 by wonderworld because: edit to delete quote



posted on Aug, 10 2011 @ 11:36 AM
link   
I say let them all fail!
We need to restore our finances to our citizens and take it away from the banks and the fed!



posted on Aug, 10 2011 @ 11:39 AM
link   
Yes let them fail.
We need thugs in the streets like England.
Actually we're damned either way.



posted on Aug, 10 2011 @ 11:46 AM
link   
reply to post by shtf2012
 


Yes we are. I say better now than later!
Either we dig in and deal with it so we can recover quicker, or we drag it out and pay a much higher price later. The lesser of two evils.



posted on Aug, 10 2011 @ 11:48 AM
link   

Originally posted by haarvik
I say let them all fail!
We need to restore our finances to our citizens and take it away from the banks and the fed!


Our Government leaders allowed the world of big finance a terrible luxury/Flaw of freedom from the fear of failure. Managers and lenders at financial companies then knew that the larger and more complex their banks got, the more immunity from market discipline they would get to enjoy since they could depend on government guarantees.

They got paid for their reckless risk taking behavior that caused this disaster.



posted on Aug, 10 2011 @ 11:49 AM
link   
Yes they are falling but the reason is because they have become volts rather than lending institutions, so all the bailout money they took they never put it on the streets to circulate.

This time they have all the liquidity from the bailouts and nowhere to put it, the economy never recuperated from the last crash it was patched by bailouts killing more the working force with unemployment as businesses kept shrinking in order to keep profits.

While the government scream with propaganda that we are doing better is not so.

If the banks released their liquidity into the streets right now with the working force mostly unemployed is going to be an inflation.

But is also another reason why they are failing in their value and that could be that they are linked after all to the global economy more than we know and now that the Euro is in trouble is backfiring.

And if that is the reason, people get ready because more bailouts will be squeezed from the tax payer.

Remember that during the last crash we no only bailout America but the rest of the world that were linked to the corruption that was first crafted in the American banks.



posted on Aug, 10 2011 @ 11:51 AM
link   
reply to post by shtf2012
 


It's sad to say that the banks in Europe, including France and Spain are on the chopping blocks. Household bank just got sold. UNREAL. We are in for a nightmare. It's gone viral, globally. Asia has had it's hits, as well.



posted on Aug, 10 2011 @ 11:55 AM
link   
let them crash and burn

and all of the bankers need to be lynched. I don't care who you are, your time on this planet should be at an end



posted on Aug, 10 2011 @ 11:56 AM
link   
reply to post by marg6043
 


Marg, I agree 100% that we never left the recession of 2008. Ive always said we are in the eye of the hurricane and coming out the other side will be worse than going in.

It’s also true that we cannot get our Fiscal house in order until we see improvement in Europe and at the present time it’s being held together with duct tape.



posted on Aug, 10 2011 @ 12:00 PM
link   
reply to post by wonderworld
 


That duct tape was at the expenses and generosity of the forced bailouts squeezed out of the tax payer and hard working Americans so the few in the global markets that hold the wealth in the world could keep their powers.

Sad but truth, we bailout more than just American banks, now that the money is been held in volts is not circulation and the economy here and abroad is stagnant regardless of what the governments of those countries including ours say that we are doing better.



posted on Aug, 10 2011 @ 12:03 PM
link   
Let them fail! Let all of the big banks fail. My only hope is that Santander gets caught in the undertow.

If a bank has more than 15 branches, it is too big to care about it's customers. My mom has worked for small town banks for the last 30 years. She cares. I told her to cut her losses and run, but she said who would care for the people as much as she does? She's right.

Yank your monies from these gluttonous monsters! Why wait for them to fail when we can cause it. Take destiny by the short and curlies and make it happen!
edit on 10-8-2011 by Bobaganoosh because: spelling



posted on Aug, 10 2011 @ 12:06 PM
link   
I should have re-worded that last post. Our Fiscal House problems aren’t Europe’s fault. It affects our stock trading, which trickles down from Wall St. to Main St. The IMF better come up with a better plan, before France and Italy get downgraded or all of Europe.



posted on Aug, 10 2011 @ 12:07 PM
link   
reply to post by Bobaganoosh
 


I agree. I have started pulling my cash out. I am encouraging friends and relatives to do the same. With BofA and CITI faltering, they could very well bring down the house of cards, and the FDIC does not have enough cash to cover every account that is supposedly insured! Someone is going to lose big time!



posted on Aug, 10 2011 @ 12:11 PM
link   
Don't worry people, the generous tax payers of America will come back again forced by congress to bailout more money.

For anybody that has not followed the news, yesterday the fed already has send to congress the possibility of more bailouts for the too big in case they start to fail again.

The only problem is that the too big are sitting on liquidity and they never helped the economy recuperate they held onto the last bailouts in order to produce profits in their balance sheets.



posted on Aug, 10 2011 @ 12:13 PM
link   
reply to post by marg6043
 


Yes, True! There have been comments from outside news sources saying both BOA and Citi are fudging the books and by a LOT. I know others with great credit and have been denied loans, giving them a 3 or 4 month run around. Donald Trump cant even get a loan. It isnt good for the housing market or small business, both are needed to improve our economy.

I really worry about Europe, they must hold it together or all hell will break out soon. It looks bleak. WhenI read about HSBC (Household Bank) I couldnt believe it!



posted on Aug, 10 2011 @ 12:17 PM
link   

Originally posted by illuminatislave
let them crash and burn

and all of the bankers need to be lynched. I don't care who you are, your time on this planet should be at an end


During the Great Depression many bankers “Jumped” in 2008 there was no sympathy many demanded that they jump. I don’t want to see that but they should be punished and also put an end to Hedge Fund Managers, or short against the banks.



posted on Aug, 10 2011 @ 12:24 PM
link   

Originally posted by marg6043
Don't worry people, the generous tax payers of America will come back again forced by congress to bailout more money.

For anybody that has not followed the news, yesterday the fed already has send to congress the possibility of more bailouts for the too big in case they start to fail again.

The only problem is that the too big are sitting on liquidity and they never helped the economy recuperate they held onto the last bailouts in order to produce profits in their balance sheets.



Dont you think the Tea Party Rookies will block any bailouts. I feel confident they will, even if the too big to fail's go under. I hope Bernanke keeps an eye on his blackberry as he speaks, we'll see another 600 point drop in the DOW. They know this happens and should wait until the market closes before speaking but it doesnt stop the Asian and Europe markets from acting. It's amazing how the market can now bring down an economy and was never designed to do so. Banks shouldnt be allowed to gamble, anything else is free game. I take that back look at AIG!



posted on Aug, 10 2011 @ 12:29 PM
link   

Originally posted by Bobaganoosh
Let them fail! Let all of the big banks fail. My only hope is that Santander gets caught in the undertow.

If a bank has more than 15 branches, it is too big to care about it's customers. My mom has worked for small town banks for the last 30 years. She cares. I told her to cut her losses and run, but she said who would care for the people as much as she does? She's right.

Yank your monies from these gluttonous monsters! Why wait for them to fail when we can cause it. Take destiny by the short and curlies and make it happen!
edit on 10-8-2011 by Bobaganoosh because: spelling


We saw a mystery recently when investors that sold did not rush to the safety of US debt treasuries or gold one day. I think the Bank of Mattress is where they are putting it. Cash is king with such uncertainty and high volatility, although we now see a rush on both gold and treasuries. S&P only hurt themselves.



posted on Aug, 10 2011 @ 12:33 PM
link   
reply to post by marg6043
 


I found this in the Wall Street Journal: WSJ

Treasury Strategies urges SEC to postpone additional money fund regulations:



With $3 trillion in assets, and with liquidity markets being as global and fluid as they are, any regulatory change to MMFs will have far-reaching impacts. Only if and when analysis can demonstrate that the value of these policies outweighs their negative impacts should they be considered. We believe research will show that the January, 2010 changes to money fund regulations are far more than adequate to meet the safety, soundness and liquidity needs of the marketplace.


Find the Treasury Strategies response here:
Treasury Strategies

It's good to know the system and how it works....if you want to beat it. I mean fix it....hehe



new topics

top topics



 
20
<<   2  3 >>

log in

join