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Dead Banks Walking: 5 biggest banks face huge loss risk
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by zeet | March 9, 2009 at 03:49 pm
255 views | 5 Recommendations | 6 comments
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A new financial report suggests that some of our biggest and most well-known banks might go insolvent, even after huge amounts of bailout-money. The investors have begun to show signs of panic.
America's five largest banks, which already have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports show.
Citibank, Bank of America, HSBC Bank USA, Wells Fargo Bank and J.P. Morgan Chase reported that their "current" net loss risks from derivatives — insurance-like bets tied to a loan or other underlying asset — surged to $587 billion as of Dec. 31. Buried in end-of-the-year regulatory reports that McClatchy has reviewed, the figures reflect a jump of 49 percent in just 90 days.
The disclosures underscore the challenges that the banks face as they struggle to navigate through a deepening recession in which all types of loan defaults are soaring.
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zeet
New York, New York, United States
Most RecentMost Recommended Comments (6)
at 15:58 on March 9th, 2009
Let them die and let banks with better policies take over their market share. Otherwise that Obama guy that runs the place noow will nationalize them....and regardless of what he says to the reporters THAT would make him a socialist.
at 16:03 on March 9th, 2009
Let fall what cannot stand!
But first, I'd like to get my bail-out money back INCLUDING the bonuses for the incompetent CEO's and board's in charge.
at 21:21 on March 9th, 2009
In the early '90s, the top ten banks in the world were all Japanese banks , but just three years later, about 1995 or so, the Japanese economy tanked, four of those ten banks went belly up, and no bank of the top ten in the world was Japanese any longer.
Nissan went bankrupt and got bought out by the French car company Renualt, which owns it still today, if I am not mistaken.
When this is finished happening here, as it did there, we will have a 'lost decade' and a lot of work to do made worse by the rest of the world having indulged as well in speculating on real estate assets in a bubble economy.
at 00:17 on March 10th, 2009
The global financial system, built on endless supplies of cheap money, rampant speculation, fraud, greed, and delusion is terminally ill and will not be coaxed into remission by stimulus packages nor restored to health by government buyouts and bailouts! Count with numbers of banks going belly up, only the conservatively managed ones will come out stronger by acquiring the 'healthy' assets left from the others.
Roy you're not mistaken, Nissan is still 30% owned by Renault of France, thanks to the turnaround by Mr Gnosh
at 16:14 on March 9th, 2009
The best you can hope for it that no other businesses get bailed out for ignoring the market and mis-pricing risk.
at 08:41 on March 29th, 2009
The banks' debt now: $13 trillion. That's how much money they are tied to due to the huge bets they made on the housing and commercial real state bubble in the US. All these CDo's, credit default Swaps, etc, are basically contracts they sold to invstors all over the world, thinking the market would never crash. There's just not enough money to prop them up. They have to be liquidated. Period.