5 more banks failed today, so naturally financials are up. :eyebrow:
They will be bought out or bailed out. Maybe we end up with 3 big banks overall…who knows why that’s looked at as bullish. I sure as hell don’t know, nor do I care really.
The market isn’t rational which is again why I don’t like fundamentals that much. It’s like using logic on a bunch of emotional bleeding women. HAHA
i havent checked this thread in a while but there is some cool ass stuff in here that seems to warrant a finance of investing forum section.
think so?
this thread is really enough… there are only like 5 people on here who wouldn’t just be asking for stock tips.
5 failed today? Couldn’t even make it to Friday huh?
I am glad to see we had the largest reduction in consumer debt in history in July. Finally feels like we are moving forward.
The recession continues to weigh heavily on banks as U.S. regulators on Friday shuttered five more institutions in Missouri, Illinois, Iowa and Arizona. This takes the total number of failed federally insured banks this year to 89, compared to 25 in 2008 and 3 in 2007.
Among the failed institutions two were in Illinois – Oak Forest-based InBank, with $212 million in assets and $199 million in deposits, and Rolling Meadows-based Platinum Community Bank, with $346 million in assets and $305 million in deposits.
The other three were Kansas City, MO-based First Bank of Kansas City, with $16 million in assets and $15 million in deposits; Sioux City, IA-based Vantus Bank with $458 million in assets and $368 million in deposits and Flagstaff, AZ-based First State Bank, with $105 million in assets and $95 million in deposits.
Failure of these institutions represents another sizable impact on the Federal Deposit Insurance Corporation’s (FDIC) fund for protecting customer accounts, as it has been appointed receiver for these banks. The failure of First Bank of Kansas City is expected to cost the deposit insurance fund an estimated $6 million and InBank’s failure will cost the insurance fund $66 million. Also, failures of Platinum Community Bank and First State Bank are expected to cost about $114 million and $47 million, respectively.
The FDIC insures deposits at 8,195 institutions with roughly $13.5 trillion in assets and when a bank fails, it reimburses customers for deposits of up to $250,000 per account. The outbreak of failing financial institutions has significantly stretched the regulator’s deposit insurance fund. At June 30, 2009, the fund corpus fell to $10.4 billion, the lowest since 1993, from $13.0 billion in the prior quarter.
De Soto, KS-based Great American Bank has agreed to acquire the deposits of First Bank of Kansas City.
Springfield, MO-based Great Southern Bank, a subsidiary of Great Southern Bancorp (GSBC), will acquire Vantus Bank’s deposits. The FDIC and Great Southern Bank agreed to share losses on about $338 million of Vantus Bank’s assets.
Chicago-based MB Financial Bank, a subsidiary of MB Financial (MBFI), will acquire almost all of the deposits of InBank. However, some brokered deposits will not be assumed by MB Financial Bank.
First State Bank’s deposits will be acquired by Tustin, CA-based Sunwest Bank.
However, the FDIC did not find a bank to acquire Platinum Community Bank’s branches or deposits. As a result, the FDIC will pay out insured deposits at Platinum Community Bank.
In the second quarter of 2009, the number of banks on the FDIC’s list of problem institutions grew to 416 from 305 in the first quarter. This is the highest number since the savings and loan crisis in 1994. Increasing loan losses on commercial real estate are expected to cause hundreds more bank failures in the next few years. The FDIC anticipates U.S. bank failures to cost $70 billion through 2013.
Last week, the FDIC allowed private investors to buy failed financial institutions. The FDIC’s board voted to reduce the cash that private equity funds must maintain in banks they acquire.
According to the FDIC Chairman, the agency has no immediate plans to borrow money from the government to replenish the deposit insurance fund. However, the FDIC may increase the fees for U.S. banks this year to strengthen the fund. The agency has already raised $5.6 billion through an added assessment.
On August 14, banking operations of Colonial BancGroup was seized by the FDIC. Colonial’s deposits and assets were sold to BB&T Corporation (BBT). Following this, Guaranty Bank failed on August 21. The FDIC sold all of Guaranty Bank’s deposits and $12 billion of the assets to BBVA Compass, the U.S. division of Spain’s second-largest bank Banco Bilbao Vizcaya Argentaria (BBV). Colonial is the largest and Guaranty the second-largest bank failure so far this year, and the 6th-largest and 10th-largest, respectively, in U.S. history. Guaranty was about half the size of Colonial Bank.
The failure of Washington Mutual last year is the largest bank failure in U.S. history. It was acquired by JPMorgan Chase (JPM). The other major acquirers of failed institutions during 2008 and 2009 include Fifth Third Bancorp (FITB), U.S. Bancorp (USB), Zions Bancorp (ZION), SunTrust Banks (STI), PNC Financial (PNC) and Regions Financial (RF).
The failed banks are victims of recession and rising loan losses. As a result of the ongoing market turmoil, these institutions experienced massive capital erosion stemming from losses arising from significant exposure to collateralized mortgage obligations (CMOs), commercial real estate loans and other commercial and industrial loans. All these factors were responsible for a drag on profitability and write-downs. According to the FDIC, U.S. banks overall lost $3.7 billion in the second quarter of 2009, compared to a profit of $7.6 billion in the prior quarter.
The current year has been difficult for consumers to pay off debt as a result of high unemployment, falling home prices and declining personal wealth.
Though current signals indicate that the economy may be stabilizing, we expect loan losses on commercial real estate portfolio to remain high for banks that hold large amounts of high-risk loans.
The U.S. Treasury last week said that it wants the world’s banks to maintain stronger capital and liquidity standards by the end of next year to prevent a re-run of the global financial crisis from which the financial sector is gradually recovering. The Treasury would require banking institutions to focus more on higher-quality capital that will help them absorb big losses. Though this would somewhat limit the profitability of banks, a proper implementation would bring stability to the overall sector and hopefully address bank failures.
Zacks Investment Research
hmm okay… because i recall talks of business opportunities as well…
off topic doesnt really cut it for these discussions imho… plus i think you WANT to acknowledge the 5-10 guys and separate the like-minds. w/e… just a thought.
I got this in an email so it probably is not true…
The Dow on Sept 10th, 2001 closed at 9605.41 (Did not open on Sept 11th…don’t need to explain why)
The Dow closed on Sept 11th, 2009 at 9605.51
:tinfoilhat:
True, except you have the numbers reversed.
Holy balls bulls.
You must have found an error in the federal governments stock market simulation program!
Just bumping to see what you fellows are watching and looking to buy if the market makes a big correction.
Note the last indicator. I’m wanting that to break it’s trendline and hopefully then we get a proper correction so I can buy into SPY via selling naked puts. 
Many people are whining about “low volume” which is in my eyes just no distribution. That’s a main reason I’m looking for long entry points again.
What looks real bad mid term is the daily macd and how while price action traveled much higher, the macd just eeked out a matching high as the last leg up. Pretty big divergence there. It’s acting like a fixed axis indicator when it’s not. 
Might check out CIM, FLO, FL and SNS. I like the relative strength there.
The market will be extremely sensitive to econonmic data that comes this week rather then earnings. All week long:
Mon: PPI / Housing starts
Tues: Beige Book
Wed: Leading indicators
Thurs: existing home sales.
Expectations are set higher for most earnings and better than expected does not relate to a good move. Analysts are being overly cautious which is to be expected but this is causing side line money to not enter the market. This will only go to support '10 1Q. I am currently looking in to the health care sector due to the beat down it has last couple of weeks not ready to pull the trigger yet but keeping a close eye.
As far a gold and the USD are concerned there seems to be some stalling out on the top of gold and bottom of the USD/JPY charts. The next few days will be the tell on S/R.
Akuma
Market sentiment has more impact than current trend.
Got long some DDM EOD Friday. Looks good so far, lets see how she plays out.
High base or start of the turn, that is the million dollar question.
USD vs S&P500 since march
USD is driving equities higher. Anyone saving money in the bank has been ripped off hardcore. Dollar is losing value compared to almost anything else out there. The issue is now it’s pretty extended and a correction seems likely in the mid term IMO.
My feeling is the fed needs to step up and raise interest and show support for the dollar. If you give away something free it has low or 0 perceived value.
Carry trade ho
Thankfully I have more money in commodities than I really should.