First it was Bear Stearns, then Fannie, Freddie, now Lehman, Mer, AIG, who is next?

Does Bank of America look to be next, after it swallows not one but two poisonous pills? How about Goldman Sachs, Morgan Stanley, JP Morgan? For a while it was Citigroup, how about little guys like Wachovia, and WFC? Who is next?
 
Is BofA really at risk?
Well, it did swallow the subprime queen Countrywide, and before it can fully digest it, it just takes on Merrill Lynch who has the most toxic mortgage investment (like CDS and other risky deriviatives) exposure among all investment banks in the US beside Lehman and Bear Stearns.
 

snowslider

New User
Of all those you mentioned, I'd say Goldman is in the best shape. Unfortunately, that's not saying much these days.

Granted, CDOs were bad, but they were only a small part of the whole scheme of hiding risk.
 

YULitle

Hall of Fame
Well, it did swallow the subprime queen Countrywide, and before it can fully digest it, it just takes on Merrill Lynch who has the most toxic mortgage investment (like CDS and other risky deriviatives) exposure among all investment banks in the US beside Lehman and Bear Stearns.
Maybe I just don't understand, but when I have money problems, I don't go buy other people.
 

njohnson

New User
Based on the reports today so far Goldman Sachs is ok, they lost money but they have enough to last. BoA I believe is fine as well. Merrill Lynch reports their earnings on Wednesday.

AIG is on life support right now. Some of my funds have holdings in AIG so I'm hoping they get a cash infusion and stay afloat but it's not looking good, they just got downgraded this morning.
 

ilovecarlos

Professional
The bank I believe is FDIC insured to, if I'm not mistaken (not sure the figure) to $100,000. Whatever amount, you are insured by the Federal Govt for amounts up to that.....in the US that is...
Unfortunately, my IRA accounts are not insured:cry: Yesterday pretty much sucked...of course, this year has pretty much sucked....sigh
 

jmverdugo

Hall of Fame
The bank I believe is FDIC insured to, if I'm not mistaken (not sure the figure) to $100,000. Whatever amount, you are insured by the Federal Govt for amounts up to that.....in the US that is...
Unfortunately, my IRA accounts are not insured:cry: Yesterday pretty much sucked...of course, this year has pretty much sucked....sigh
Uhmm, up to $100,000?, what about the rest of my money??

j/k thanks for the info :)
 

njohnson

New User
Yeah this year has been awful, I've lost quite a bit of money but it's all on paper and the entire market has been dragged down so I have faith it will rebound after this whole mess is cleared up.

Once the last of the flood of arm mortgages has stopped resetting, I believe you will see more people in the housing market which will in turn spark the entire economy as builders get back to work, companies start making more goods, and people go back to work. This housing is such a trickle down effect on everything.

Although I'm hoping home prices don't go up before I buy my house next year :D
 
The bank I believe is FDIC insured to, if I'm not mistaken (not sure the figure) to $100,000. Whatever amount, you are insured by the Federal Govt for amounts up to that.....in the US that is...
Unfortunately, my IRA accounts are not insured:cry: Yesterday pretty much sucked...of course, this year has pretty much sucked....sigh
Is your IRA held by a bank? I believe banks insure IRAs up to $250K.

The investment might be unprotected, but the IRA itself should be insured by FDIC.
 

DashaandSafin

Hall of Fame
Probably not BoA even though acquiring Merril was probably not the best move...but we will see won't we?

Goldman is in decent shape, JP Morgan is not.
 

ilovecarlos

Professional
Uhmm, up to $100,000?, what about the rest of my money??

j/k thanks for the info :)

2 words: Separate banks;)

Is your IRA held by a bank? I believe banks insure IRAs up to $250K.

The investment might be unprotected, but the IRA itself should be insured by FDIC.
Nope...mutual funds held by an investment house...fortunately NOT one of the funds that has up to 14% of the fund invested in the above mentioned toilets....er...investment/insurance co's....still.....sigh.....
 

onehandbh

Legend
the economy is all messed up. washington mutual is next.
I head wamu just got downgraded to JUNK status.

btw, regarding the FDIC. There $ 100k coverage does not cover EVERY
account. Only a percentage of the accounts out there. Or rather they
have a set amount that they can pay out. Once that amount is gone
then you just have to hope the government ups the amount or prints
more money. This system is usually fine unless a whole bunch of banks
fail at the same time...
 
J

Julieta

Guest
Will ManU have to show up with AIG blanked off their shirts as West Ham had to do with the defunct XL Travel?

Seriously though, this is a sad financial situation.
 
Although your bank account is FDIC insured up to $!00K, but I heard that you might have to waite up to 3 years to get your money back if your bank goes under.
 

WBF

Hall of Fame
``The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under Section 13(3) of the Federal Reserve Act. The secured loan has terms and conditions designed to protect the interests of the U.S. government and taxpayers.

``The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance.

``The purpose of this liquidity facility is to assist AIG in meeting its obligations as they come due. This loan will facilitate a process under which AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the overall economy.

``The AIG facility has a 24-month term. Interest will accrue on the outstanding balance at a rate of three-month Libor plus 850 basis points. AIG will be permitted to draw up to $85 billion under the facility.

``The interests of taxpayers are protected by key terms of the loan. The loan is collateralized by all the assets of AIG, and of its primary non-regulated subsidiaries. These assets include the stock of substantially all of the regulated subsidiaries. The loan is expected to be repaid from the proceeds of the sale of the firm's assets. The U.S. government will receive a 79.9 percent equity interest in AIG and has the right to veto the payment of dividends to common and preferred shareholders.''
This doesn't seem like it will be a fun game of dominos for many.

Apart from those with golden parachutes. ****ing criminal.
 
Yes gold is up, look like the only way to get out of this mess is to inflate its way out of it, which is the exactly what caused this crisis. :twisted:

Look like the only independent investment banks are in trouble, Goldman Sachs and Morgan Stanley are down more than 50% in the last few days.
 
gold is UP:confused:, it went down from 920 to 845, that is $75 almost 9%, gold should have been at 2000 by now, the fact that it has not is very telling....... the goldbugers are nervous :)

it will be under 800 by tomorrows close:oops::shock:
 
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What are you smoking? Gold was up like 10 or 20 almost the whole day until the close and ended down like 20, and it did enjoy a >80 gain the day before. It is up like 20 as now today at 850.
 
I am not talking about intraday high&low here.
all you said was gold is up, and I was talking from its high and lows on that day that you were talking about,
my statement still hold true it was as high as 920 and as low as 840 so it came down that much, the world does trade gold not just the US, like I said the goldbuggers are nervous and cashing on the worst day of armageddon, It should have been 2000 by now it is not, that was my point,
 
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