IndyMac bank run: A sign of things to come?
Harry Koza
July 18, 2008
http://www.theglobeandmail.com/servlet/story/LAC.20080718.RKOZA18/TPStory/Business
That's kind of odd, since it was a substantial flameout. Indy was the second-largest mortgage lender in the United States, and the seventh-largest savings and loan, with $32-billion (U.S.) in assets and $19-billion in deposits - $1-billion uninsured. It was the biggest bank failure in years. Since 2000, according to the FDIC, there have been 32 bank failures in the United States, with IndyMac the fifth one so far in 2008 and bigger than all the other 31 put together.
The FDIC has another 90 to 150 banks on its list of "troubled" lenders, so it seems likely that there will be more banks going under in the months ahead. Somehow that doesn't seem to bode too well for all those predictions of a second-half recovery this year, you know, that mythical V-shaped chart form, dipping quickly into recession only to storm back up into a new boom.
Tuesday, August 5, 2008
Investors Moving Money to Swiss Banks
Investors Moving Money to Swiss Banks Fearing U.S. Sub-Mortgage Crisis and IndyMac Bank Closure
Kevin Wessell
Los Angeles, CA (PRWEB) August 5, 2008
http://www.prweb.com/releases/Offshore/Banking/prweb1177124.htm
Europe has multitudes of large, safe, banks without exposure to the damaging U.S. mortgage disaster. In contrast, many U.S. banks are sitting on shaky ground. It is said that two banking giants, Washington Mutual and Bank of America - with the acquisition of Countrywide Financial - have substantial sub-prime exposure. This is not to say one should necessarily lose faith in these giant organizations. It is just to say that they are feeling the financial pain of the recent disaster. First National Bank of Nevada, based in Reno, Nevada, and First Heritage Bank of Newport Beach, Calif., were both shut down by federal regulators recently.
Kevin Wessell
Los Angeles, CA (PRWEB) August 5, 2008
http://www.prweb.com/releases/Offshore/Banking/prweb1177124.htm
Europe has multitudes of large, safe, banks without exposure to the damaging U.S. mortgage disaster. In contrast, many U.S. banks are sitting on shaky ground. It is said that two banking giants, Washington Mutual and Bank of America - with the acquisition of Countrywide Financial - have substantial sub-prime exposure. This is not to say one should necessarily lose faith in these giant organizations. It is just to say that they are feeling the financial pain of the recent disaster. First National Bank of Nevada, based in Reno, Nevada, and First Heritage Bank of Newport Beach, Calif., were both shut down by federal regulators recently.
IndyMac Collapse Fuels Fears About WaMu
IndyMac Collapse Fuels Fears About WaMu
by Wendy Kaufman
All Things Considered, July 17, 2008
http://www.npr.org/templates/story/story.php?storyId=92642046
Biggest U.S. Bank Failures: Four of the top 10 biggest failed U.S. banks and thrifts were based in California.
1. Continental Illinois National Bank, Chicago (1984) - $40 billion in assets
2. IndyMac Bank, Pasadena, Calif. (2008) - $32.2 billion (as of March 31)
3. American Savings & Loan, Stockton, Calif. (1988) - $30.2 billion
4. First RepublicBank, Dallas (1988) - $17.1 billion
5. Bank of New England, Boston (1991) - $13.4 billion
6. Gibraltar Savings, Simi Valley, Calif. (1989) - $13.4 billion
7. HomeFed Bank, San Diego (1992) - $12.2 billion
8. Southeast Bank, Miami (1991) - $11.0 billion
9. Goldome, Buffalo, N.Y. (1991) - $9.9 billion
10. City Savings (1989) Somerset, N.J. - $9.8 billion
Source: FDIC
by Wendy Kaufman
All Things Considered, July 17, 2008
http://www.npr.org/templates/story/story.php?storyId=92642046
Biggest U.S. Bank Failures: Four of the top 10 biggest failed U.S. banks and thrifts were based in California.
1. Continental Illinois National Bank, Chicago (1984) - $40 billion in assets
2. IndyMac Bank, Pasadena, Calif. (2008) - $32.2 billion (as of March 31)
3. American Savings & Loan, Stockton, Calif. (1988) - $30.2 billion
4. First RepublicBank, Dallas (1988) - $17.1 billion
5. Bank of New England, Boston (1991) - $13.4 billion
6. Gibraltar Savings, Simi Valley, Calif. (1989) - $13.4 billion
7. HomeFed Bank, San Diego (1992) - $12.2 billion
8. Southeast Bank, Miami (1991) - $11.0 billion
9. Goldome, Buffalo, N.Y. (1991) - $9.9 billion
10. City Savings (1989) Somerset, N.J. - $9.8 billion
Source: FDIC
Sunday, August 3, 2008
Will Europe Collapse Before the United States?
Will Europe Collapse Before the United States?
John Hoefle
Executive Intelligence Review
July 25, 2008
http://www.larouchepub.com/other/2008/3529europe_collapse_b4_us.html
We are not arguing that the European economy is in worse shape than that of the U.S., for both are caught in the grip of the failure of the global financial system, and both are bankrupt. What gives the United States an advantage over Europe is the superior features of the U.S. Constitutional system, which gives the U.S. Congress control over the emission of credit. In the parts of Europe dominated historically by the Venetians and the Anglo-Dutch Liberal system, private capital has always dominated governments. In the British Empire it is not the British government which rules, or even the Queen, but the City of London, and the financier slime mold which controls the City.
The U.S., on the other hand, has all the authority it needs under the Constitution to reign in these private flows of capital, giving it powerful tools with which to keep the imperial parasites at bay. Franklin Roosevelt, for example, used the power of government to break the back of the bankers during the Great Depression, paving the way for the New Deal. The hearings into the causes of the banking crisis and the legislation which followed, delivered a blow to the British-controlled House of Morgan from which it never fully recovered, sending a signal around the world that the U.S. was not only capable, but determined, to defend itself and its people.
John Hoefle
Executive Intelligence Review
July 25, 2008
http://www.larouchepub.com/other/2008/3529europe_collapse_b4_us.html
We are not arguing that the European economy is in worse shape than that of the U.S., for both are caught in the grip of the failure of the global financial system, and both are bankrupt. What gives the United States an advantage over Europe is the superior features of the U.S. Constitutional system, which gives the U.S. Congress control over the emission of credit. In the parts of Europe dominated historically by the Venetians and the Anglo-Dutch Liberal system, private capital has always dominated governments. In the British Empire it is not the British government which rules, or even the Queen, but the City of London, and the financier slime mold which controls the City.
The U.S., on the other hand, has all the authority it needs under the Constitution to reign in these private flows of capital, giving it powerful tools with which to keep the imperial parasites at bay. Franklin Roosevelt, for example, used the power of government to break the back of the bankers during the Great Depression, paving the way for the New Deal. The hearings into the causes of the banking crisis and the legislation which followed, delivered a blow to the British-controlled House of Morgan from which it never fully recovered, sending a signal around the world that the U.S. was not only capable, but determined, to defend itself and its people.
The End of the Anglo-American Empire?
The End of the Anglo-American Empire?
http://www.australia.to/index.php?option=com_content&view=article&id=348:richard-c-cook&catid=1:latest
Aug 3, 2008
Another gang has been those among the world’s money-lenders who became experts at parasitic high finance and got rich through the explosive growth of fractional reserve banking. These people have dominated the economies of nations through such institutions as the Bank of England, the Federal Reserve System, the Bank of International Settlements (BIS), and other central and commercial banks, currency and commodity exchanges, and stock and bond markets.
The bankers on the one hand and the political racketeers on the other merged over a century ago under the oversight of figures associated with the creation of the Anglo-American Empire, such as Cecil Rhodes, Lord Milner, Colonel House, Winston Churchill, the House of Windsor, and, as examples of families involved, the Rothschilds, Schiffs, Morgans, Harrimans, Rockefellers, Myers, and Bushes. Among the major projects of the empire in recent decades have been the creation and maintenance of both the kingdom of Saudi Arabia and the state of Israel as Western bridgeheads of influence, power, and wealth in the Middle East .
http://www.australia.to/index.php?option=com_content&view=article&id=348:richard-c-cook&catid=1:latest
Aug 3, 2008
Another gang has been those among the world’s money-lenders who became experts at parasitic high finance and got rich through the explosive growth of fractional reserve banking. These people have dominated the economies of nations through such institutions as the Bank of England, the Federal Reserve System, the Bank of International Settlements (BIS), and other central and commercial banks, currency and commodity exchanges, and stock and bond markets.
The bankers on the one hand and the political racketeers on the other merged over a century ago under the oversight of figures associated with the creation of the Anglo-American Empire, such as Cecil Rhodes, Lord Milner, Colonel House, Winston Churchill, the House of Windsor, and, as examples of families involved, the Rothschilds, Schiffs, Morgans, Harrimans, Rockefellers, Myers, and Bushes. Among the major projects of the empire in recent decades have been the creation and maintenance of both the kingdom of Saudi Arabia and the state of Israel as Western bridgeheads of influence, power, and wealth in the Middle East .
Central bank body warns of Great Depression
Central bank body warns of Great Depression
http://www.bankingtimes.co.uk/09062008-central-bank-body-warns-of-great-depression/
by Gill Montia
June 9, 2008
The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s.
In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.
According to the BIS, complex credit instruments, a strong appetite for risk, rising levels of household debt and long-term imbalances in the world currency system, all form part of the loose monetarist policy that could result in another Great Depression.
http://www.bankingtimes.co.uk/09062008-central-bank-body-warns-of-great-depression/
by Gill Montia
June 9, 2008
The Bank for International Settlements (BIS), the organisation that fosters cooperation between central banks, has warned that the credit crisis could lead world economies into a crash on a scale not seen since the 1930s.
In its latest quarterly report, the body points out that the Great Depression of the 1930s was not foreseen and that commentators on the financial turmoil, instigated by the US sub-prime mortgage crisis, may not have grasped the level of exposure that lies at its heart.
According to the BIS, complex credit instruments, a strong appetite for risk, rising levels of household debt and long-term imbalances in the world currency system, all form part of the loose monetarist policy that could result in another Great Depression.
Fla. Bank Shuttered; SunTrust to Take Over Branches
Fla. Bank Shuttered; SunTrust to Take Over Branches
By David Mildenberg and Alison Vekshin
Bloomberg News
Saturday, August 2, 2008; Page D03
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/01/AR2008080103409.html
The pace of closings is accelerating. Banks and securities firms have reported more than $480 billion in writedowns and credit losses since 2007, when three banks were shuttered.
Regulators in July closed IndyMac Bancorp, a California-based mortgage lender with $32 billion in assets, the third-largest bank seizure in U.S. history.
"The only thing sure other than death and taxes is that deposit insurance premiums will be going up as more banks fail," said Gerard Cassidy, an analyst with RBC Capital Markets in Portland, Maine. He expects 300 U.S. banks to fail in the next several years, mainly because of mounting losses from real estate-related loans.
By David Mildenberg and Alison Vekshin
Bloomberg News
Saturday, August 2, 2008; Page D03
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/01/AR2008080103409.html
The pace of closings is accelerating. Banks and securities firms have reported more than $480 billion in writedowns and credit losses since 2007, when three banks were shuttered.
Regulators in July closed IndyMac Bancorp, a California-based mortgage lender with $32 billion in assets, the third-largest bank seizure in U.S. history.
"The only thing sure other than death and taxes is that deposit insurance premiums will be going up as more banks fail," said Gerard Cassidy, an analyst with RBC Capital Markets in Portland, Maine. He expects 300 U.S. banks to fail in the next several years, mainly because of mounting losses from real estate-related loans.
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